When are Non-Compliance fees due for a Deer Solution franchise?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
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| 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. |
| Audit | Cost of audit | On demand | For costs incurred by us for each financial audit, provided the audit determines underreporting of 2% or greater during any designated audit period. Includes fees incurred by us including audit, legal, travel and reasonable accommodations. |
| Quality Assurance Audit | Actual costs incurred by us | As invoiced | Payable if we engage a third party to perform periodic quality assurance audits, including mystery shopper programs. |
| Management Service | 20% of Gross Sales, plus expenses | As invoiced | Payable if we elect to manage the Franchised Business due to death, disability, a failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager, etc. |
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 fee payments varies depending on the specific type of non-compliance.
For Reporting Non-Compliance and Operations Non-Compliance, the fees are due 14 days from the invoice date. Reporting Non-Compliance fees are $150 per occurrence and are payable if you fail to submit Royalty and Activity Reports, along with other required reports and financial statements, on time. Operations Non-Compliance fees range from $450 to $1,000 per occurrence, plus inspection and re-inspection costs, and are payable if you fail to comply with the operational standards outlined in the Franchise Agreement.
For Payment Non-Compliance, a fee of $150 per occurrence is payable for failing to make timely payments of fees due to Deer Solution under the Franchise Agreement, along with interest, costs, and legal fees. The FDD does not specify a due date for Payment Non-Compliance fees. For general Non-Compliance, which includes fees, costs, and expenses incurred by Deer Solution due to your breach or non-compliance with the Franchise Agreement terms, payment is due on demand. Similarly, Legal Fees and Expenses, the Audit fee, and Collections are due as incurred or on demand.
Prospective Deer Solution franchisees should carefully review the Franchise Agreement to fully understand the operational standards, reporting requirements, and payment schedules to avoid incurring these non-compliance fees. Understanding these obligations and maintaining compliance is crucial for managing costs and maintaining a positive relationship with Deer Solution.