How much must a Deer Solution franchisee contribute to the Advertising Cooperative?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
authorize, establish, designate and de-authorize a local or regional advertising cooperative within those markets that Franchisor designates (the "Advertising Cooperative"). Franchisee agrees that Franchisor possesses the sole and exclusive right to designate any geographic area in which two or more Deer Solution Business franchises are located as a region for the purpose of establishing an Advertising Cooperative. If Franchisee's Deer Solution Business or Operating Territory is located within the geographic area of an Advertising Cooperative, franchisee must participate in and contribute to the Advertising Cooperative. Franchisee agrees to the following:
- (1) If Franchisor previously instituted or, in the future, institutes an Advertising Cooperative that includes, in whole or in part, Franchisee's Operating Territory or Franchisee's Deer Solution Business Location, Franchisee shall participate in and make such on-going financial contributions to the Advertising Cooperative, as determined by the Advertising Cooperative;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, if a franchisee's territory is within the geographic area of a designated Advertising Cooperative, participation and financial contributions are mandatory. The specific amount is determined by the Advertising Cooperative itself. However, the franchisee's contribution will not exceed the local minimum marketing obligations outlined in Article 9.B of the agreement, and these contributions count toward fulfilling those minimum local marketing requirements.
Deer Solution retains the sole right to establish and manage these Advertising Cooperatives in designated markets. These cooperatives are formed to administer marketing programs and develop media, all subject to Deer Solution's review and approval. Franchisees must adhere to the cooperative's requirements and execute any necessary documents to become members.
Franchisees are also obligated to provide statements and reports as required by the Advertising Cooperative and approved by Deer Solution. All funds collected by the cooperative must be used exclusively for the cooperative's stated purposes. It's important to note that Deer Solution businesses owned by the franchisor or its affiliates within the cooperative's area are not required to contribute.
Prospective Deer Solution franchisees should inquire about the existence of any Advertising Cooperatives in their target territory and carefully review Article 9.B to understand their local minimum marketing obligations. Understanding these obligations will help them estimate their potential contributions to the Advertising Cooperative.