Is Deer Solution obligated to ensure that Brand Development Fund expenditures in any geographic area are proportionate to contributions from Deer Solution businesses in that area?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
- (9) Although Franchisor will endeavor to utilize the Brand Development Fund to develop advertising and marketing materials and programs, Franchisor undertakes no obligation to ensure that expenditures by the Brand Development Fund in or affecting any geographic area are proportionate or equivalent to the contributions to the Brand Development Fund by Deer Solution Businesses operating in that geographic area or that any Deer Solution Businesses will benefit directly or in proportion to its contribution to the Brand Development Fund from the development of advertising and marketing materials. Franchisor may use the Brand Development Fund to promote or benefit any type of Deer Solution Businesses in the System. Franchisor may use the Brand Development Fund to promote or benefit Deer Solution Businesses located within a particular region of the United States. Franchisee agrees that Franchisee's failure to derive any such benefit will not serve as a basis for a reduction or elimination of its obligation to contribute to the Brand Development Fund. Franchisee agrees that the failure (whether with or without Franchisor's permission) of any other franchisee to make the appropriate amount of contributions to the Brand Development Fund shall not in any way release Franchisee from or reduce Franchisee's obligations under this Article 9, such obligations being separate and independent obligations of Franchisee under this Agreement. Except as expressly provided in this Article 9, Franchisor assumes no direct or indirect liability, responsibility, or obligation to Franchisee with respect to the maintenance, direction, and/or administration of the Brand Development Fund; and
- (10) Franchisor, in Franchisor's Reasonable Business Judgment, may establish a council to provide guidance respecting the administration of the Brand Development Fund and marketing matters concerning the Brand Development Fund. The council shall only serve in an advisory capacity and Franchisor shall select members of the council which may be comprised of employees of Franchisor, Franchisor, franchisees of the System and third parties.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, Deer Solution is not obligated to ensure that Brand Development Fund expenditures in any geographic area are proportionate to the contributions from Deer Solution businesses operating in that area. The document states that Deer Solution undertakes no obligation to ensure that expenditures by the Brand Development Fund in or affecting any geographic area are proportionate or equivalent to the contributions to the Brand Development Fund by Deer Solution Businesses operating in that geographic area. Additionally, Deer Solution does not guarantee that any Deer Solution Businesses will benefit directly or in proportion to its contribution to the Brand Development Fund from the development of advertising and marketing materials.
Deer Solution retains the discretion to use the Brand Development Fund to promote or benefit any type of Deer Solution Businesses within the system or those located in a specific region of the United States. A franchisee's obligation to contribute to the Brand Development Fund is not reduced or eliminated even if the franchisee does not directly benefit from the fund's expenditures. Furthermore, the failure of any other franchisee to contribute to the Brand Development Fund does not release or reduce a franchisee's obligations under the agreement.
Deer Solution may establish a council to provide guidance on the administration of the Brand Development Fund and marketing matters. However, this council serves only in an advisory capacity, and Deer Solution selects its members, which may include employees, franchisees, and third parties. This arrangement gives Deer Solution significant control over the Brand Development Fund and how it is used, with no guarantee of proportional benefit to individual franchisees based on their contributions.