What is the name given to the brand development fund in the Deer Solution FDD?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company collects funds from franchisees to manage the brand level advertising, marketing and development program. The fee is based on a percentage of the gross sales less any amount paid towards sales tax, payable weekly.
Franchisee agrees that the Brand Development Fund may be used to pay various costs and expenses of Franchisor for such reasonable salaries, wages, administrative costs and overhead as Franchisor may incur in activities reasonably related to the administration, activities and/or the brand awareness goals of the Brand Development Fund including expenses incurred by Franchisor for advertising, marketing, product and service testing, product and service development, maintenance, evaluation and monitoring of the Business Management Systems, upgrades to the System Website, development of Digital Media and creative development that is internally administered or prepared by Franchisor and other marketing activities made by Franchisor, provided, however, that salary expenses for Franchisor's personnel paid by the Brand Development Fund shall be commensurate with the amount of that time spent by such personnel on Brand Development Fund matters.
Franchisor may spend in a fiscal year an amount greater or less than the aggregate contributions of all Deer Solution Businesses to the Brand Development Fund in that year;
Franchisee agrees to participate in all advertising, marketing, promotions, research, and public relations programs instituted by the Brand Development Fund;
Deer Solution Businesses owned by Franchisor or Franchisor's affiliates are not required to pay any Brand Development Fund Fee or contribute to or make any contribution to the Brand Development Fund;
Franchisee and Franchisor acknowledge and agree that (a) the Brand Development Fund is not a trust, (b) Franchisor is not a trustee or fiduciary of the Brand Development Fund, and (c) Franchisor may deposit and maintain any and all funds of the Brand Development Fund Fee in Franchisor's general accounts.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, the fund used for brand-level advertising, marketing, and development is referred to as the "Brand Development Fund." Deer Solution collects fees from franchisees to manage this fund, with the fee calculated as a percentage of gross sales, less any sales tax, and is payable weekly.
The Brand Development Fund may cover various costs incurred by Deer Solution, such as salaries, administrative expenses, and overhead related to the fund's administration and brand awareness goals. These expenses can include advertising, marketing, product and service testing, system maintenance, website upgrades, and other marketing activities. However, salary expenses for Deer Solution personnel must align with the time spent on Brand Development Fund matters.
Deer Solution may spend more or less than the total contributions to the Brand Development Fund in a given fiscal year. Franchisees are required to participate in all advertising, marketing, promotions, research, and public relations programs instituted by the Brand Development Fund. Deer Solution businesses owned by the franchisor or its affiliates are not required to pay into the Brand Development Fund. The fund is not a trust, and Deer Solution is not a trustee or fiduciary of the fund, allowing the franchisor to deposit and maintain the funds in its general accounts without segregation.