What is the maximum weekly contribution required for the Brand Development Fund for a Deer Solution franchise?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
As disclosed in Item 6 of this Disclosure Document, you must contribute a weekly sum not to exceed 3% of weekly Gross Sales to the Brand Development Fund.
We may use the Brand Development Fund for market studies, research, service development, product development, testing, research studies, technology development, advertising and public relations studies or services, creative production and printing of advertising and marketing materials, advertising copy and commercials, tracking costs, agency fees, administrative costs, which may include reimbursement for direct administrative and personnel costs associated with advertising and public relations, and any other costs associated with the development, marketing and testing of advertising, marketing and public relations materials, and the purchase of media placement, advertising time and public relations materials in national, regional or other advertising and public relations media in a manner determined by us, in our discretion, to be in the best interest of the franchisees and the System.
Our company and/or affiliate owned Deer Solution Businesses may but are not required to contribute to the Brand Development Fund.
The Brand Development Fund will be required to maintain unaudited financial records detailing its expenditures and will make available to you (no more frequently than one time in any 12 month period) an unaudited accounting of how the monies contributed to the Brand Development Fund were spent each year.
We are not required to segregate the Brand Development Fund from our general operating funds and we are not a fiduciary or trustee of the Brand Development Fund.
The Brand Development Fund will not be used to directly promote your Deer Solution Business or the marketing area in which your Deer Solution Business will be located. (Franchise Agreement, Article 9.A.).
We may utilize the Brand Development Fund to develop and test various media and technologies for potential utilization and/or improvement of the operations of Deer Solution Businesses and the marketing of Deer Solution Businesses.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 29–35)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees must contribute to the Brand Development Fund. The maximum weekly contribution required is 3% of weekly gross sales.
The Brand Development Fund is used at the discretion of Deer Solution for various purposes, including market studies, research, advertising, and public relations. These activities aim to benefit both the franchisees and the Deer Solution system as a whole. Deer Solution may also use the fund to cover administrative costs and employee salaries related to managing the fund.
Deer Solution and its affiliates may contribute to the Brand Development Fund, but they are not required to do so. While the fund is not used to directly promote an individual Deer Solution Business or its specific marketing area, it can be used to develop and test media and technologies that could improve the operations and marketing of Deer Solution Businesses. Franchisees may or may not directly benefit from these technology developments and improvements.
Deer Solution is not required to segregate the Brand Development Fund from its general operating funds and is not considered a fiduciary or trustee of the fund. Franchisees are entitled to an unaudited accounting of how the Brand Development Fund's monies were spent each year, available no more than once every 12 months. As of December 31, 2024, the Brand Development Fund was at 2% of Gross Sales. Of the $30,209.52 collected, 5.8% was spent on advertising and marketing, 9.7% on consulting and fund administration, 64.9% on creative and content production, and 19.5% on marketing technology and digital infrastructure.