When is the Non-Compliance fee due for a Deer Solution franchisee?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
| Reporting Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit Royalty and Activity Reports, and other reports and financial statements as required under Franchise Agreement. |
|---|---|---|---|
| Operations Non-Compliance | $450 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required and specified under Franchise Agreement, plus inspection and re- inspection costs incurred by us. |
| Payment Non-Compliance | $150 per occurrence | Payable for failure to timely pay, when due, a fee or payment due to us under the Franchise Agreement, plus interest, costs, and legal fees. | |
| Non-Compliance | Actual fees, costs, and expenses | On demand | Fees, costs, and expenses incurred by us as a result of your breach or non- compliance with the terms of your Franchise Agreement. |
| Legal Fees and Expenses | Costs and expenses | As incurred | This fee includes, but is not limited to, attorneys’ fees for any failure to pay amounts when due or failure to comply in any way with the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the timing of non-compliance fees depends on the specific type of non-compliance. The FDD outlines several categories of non-compliance, each with its own payment terms.
For Reporting Non-Compliance and Operations Non-Compliance, the fee is due within 14 days of the invoice date. The Reporting Non-Compliance fee is $150 per occurrence and is payable if a franchisee fails to submit Royalty and Activity Reports or other required financial statements on time. The Operations Non-Compliance fee ranges from $450 to $1,000 per occurrence and covers failures to meet operational standards as specified in the Franchise Agreement, along with any inspection and re-inspection costs incurred by Deer Solution.
For general Non-Compliance, which covers breaches of the Franchise Agreement, the fees, costs, and expenses are due on demand. Similarly, Legal Fees and Expenses, which include attorney's fees for failure to pay amounts when due or comply with the Franchise Agreement, are due as incurred. Payment Non-Compliance, which is $150 per occurrence, does not have a specified due date in the table.
Prospective Deer Solution franchisees should carefully review the Franchise Agreement to understand all the operational standards and reporting requirements to avoid incurring these non-compliance fees. They should also clarify the due date for Payment Non-Compliance fees with the franchisor.