What is the meaning of 'Scheduled Business Commencement Date' in relation to the 'Accounting Period' for a Deer Solution franchise?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
sideration, the receipt and sufficiency of which is hereby mutually acknowledged, the parties agree, as follows:
ARTICLE 1 DEFINITIONS
Supplementing the terms and definitions contained in the foregoing "Recitals":
"Accounting Period" refers to and means the period of time selected and determined by Franchisor for the required measurement and reporting of financial information and payment of financial obligations by Franchisee. The applicable measurement period will be determined by Franchisor from time to time with respect to Franchisee's obligations to report financial information and data to Franchisor and Franchisee's payment of all fees, including, and other obligations under this Agreement. The respective "Accounting Period" shall be those Franchisor designated times, whether, instantly on a recurring basis upon receipt of Gross Sales, weekly, monthly, or otherwise, as designated by Franchisor, with all such Accounting Periods automatically commencing on the earlier of the (a) Scheduled Business Commencement Date, or (b) the Actual Business Commencement Date of the Franchised Business and, continuing, throughout the Term of this Agreement. Unless otherwise designated by Franchisor at any time, unless otherwise specified in this Agreement, the Accounting Period shall be a weekly period for each and every week throughout the Term of this Agreement.
"Actual Business Commencement Date" refers to and means the date of the grand opening of the Franchised Business and/or the date upon which the Franchised Business is open to the public.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the 'Accounting Period' refers to the time frame the franchisor uses to measure and report a franchisee's financial information and payment obligations. The 'Accounting Period' will be determined by Deer Solution and can be weekly, monthly, or another designated time frame.
The 'Accounting Period' automatically starts on the earlier of the 'Scheduled Business Commencement Date' or the 'Actual Business Commencement Date' and continues throughout the term of the agreement. The 'Scheduled Business Commencement Date' is defined as the date that occurs 120 days following the effective date of the Franchise Agreement. The 'Actual Business Commencement Date' refers to the date of the grand opening or when the business is open to the public.
Unless Deer Solution designates otherwise, the accounting period is weekly for the entire term of the agreement. This means that franchisees will likely need to report financial information and pay fees on a weekly basis, starting from the earlier of when they are scheduled to open (120 days after signing the agreement) or when they actually open their Deer Solution business to the public.
This definition is important for prospective franchisees as it clarifies when their financial reporting and payment obligations begin. Understanding the difference between the 'Scheduled Business Commencement Date' and the 'Actual Business Commencement Date' is crucial for planning and managing the financial aspects of the Deer Solution franchise.