How often is the Royalty Fee paid by Deer Solution franchisees?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 2: Royalty Fees – You must pay to us a continuing royalty fee (the "Royalty Fee"). The Royalty Fee is a continuing weekly fee equal to 8% (the "Royalty Rate") of your weekly Gross Sales. In the event we receive Gross Sales directly from the customer of your Deer Solution Business, we may charge the Royalty Fee instantly. If any federal, state, or local tax other than an income tax is imposed on the Royalty Fee which we cannot directly, and dollar for dollar, offset against taxes required to be paid under any applicable federal or state laws, you must compensate us in the manner prescribed by us so that the net amount or net effective Royalty Fees received by us is not less than 8% of your Gross Sales.
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the Royalty Fee is paid weekly. The Royalty Fee is 8% of the franchisee's weekly Gross Sales. The FDD specifies that if Deer Solution receives Gross Sales directly from the customer, they may charge the Royalty Fee instantly. Franchisees are obligated to compensate Deer Solution for any federal, state, or local tax other than income tax imposed on the Royalty Fee, ensuring that Deer Solution receives a net effective Royalty Fee of 8% of Gross Sales.
Deer Solution requires franchisees to sign an ACH Authorization Form, allowing them to electronically debit the franchisee's designated bank account for all fees payable to Deer Solution. Franchisees must deposit their Gross Sales into designated bank accounts subject to ACH authorization. Deer Solution may directly collect the Gross Sales and pre-deduct all fees due to them, their affiliates, or designated suppliers, remitting the balance to the franchisee.
Gross Sales are defined as the total dollar sales from all business and customers of the Deer Solution Business, including revenues from any source, whether in cash, credit, or other consideration. Gross Sales do not include sales taxes that the franchisee collects and remits to the proper taxing authority, or authorized promotional discounts provided to customers. These stipulations ensure that Deer Solution receives its Royalty Fees promptly and accurately, while also providing clarity on what constitutes Gross Sales for fee calculation purposes.