What is the minimum Royalty Fee during any Renewal Term for a Deer Solution franchise?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Royalty Fees: Throughout the Term of this Agreement, Franchisee shall pay to Franchisor a continuing weekly non-refundable royalty fee (the "Royalty Fee") in an amount equal to 8% (the "Royalty Rate") of Franchisee's weekly Gross Sales. The Royalty Fee shall be calculated and, at the election of Franchisor and as shall be determined by Franchisor, shall be payable to Franchisor, either: (a) instantly and continuously, on a per transaction / per receipt basis on each and every dollar of Gross Sales related to the Franchised Business that is received and/or processed by Franchisor, Franchisor's affiliates, Franchisor approved and designated third party vendors, and/or by Franchisee; or (b) a weekly basis for each respective weekly Accounting Period. During any Renewal Term, the Royalty Fee shall be determined by Franchisor but shall not be less than the Royalty Fee and Royalty Rate set forth in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, during any renewal term, the Royalty Fee will be determined by Deer Solution, but it cannot be less than the Royalty Fee and Royalty Rate outlined in the current agreement.
Currently, the Royalty Fee is a continuing weekly fee equal to 8% of the franchisee's weekly Gross Sales. This fee is non-refundable. Deer Solution has the option to collect this fee either instantly on every dollar of Gross Sales or on a weekly basis for each accounting period.
For a prospective Deer Solution franchisee, this means that when renewing the franchise agreement, they can expect to pay at least 8% of their weekly gross sales as a royalty fee. The actual royalty fee could be higher, depending on what Deer Solution determines at the time of renewal. It is important to note that this fee is ongoing and non-refundable, representing a significant operational cost.