How often are Deer Solution Sales and Support Center Fees calculated?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that Franchisee shall exclusively adopt and utilize only those Sales and Support Centers designated and approved by Franchisor and that Franchisee shall exclusively adopt and utilize only those Sales and Support Center Services designated by Franchisor of which Franchisor may be the sole and exclusive supplier. Franchisee shall pay for all costs and expenses charged to Franchisee for Sales and Support Center Services. Fees for Sales and Support Center Services shall, in Franchisor's Reasonable Business Judgment, be exclusively determined by Franchisor from time to time and may include fixed general overhead fees and variable fees related to contacts involving or potentially involving the Franchised Business including, but not limited to, an initial prospect fee related to a prospect that contacts a Sales and Support Center, estimate scheduling and rescheduling, service visit scheduling and rescheduling, and escalation fees responding to customer complaints and supplemental inquiries. The variable Sales and Support Center Fees shall not exceed 8.5% of weekly Gross Sales, provided that Franchisor reserves the right to charge per communication fees that will be charged each and every time a communication occurs so long as such fees do not exceed 8.5% of Franchisee's Gross Sales in any weekly Accounting Period. Franchisee's participation and use of the Sales and Support Center is mandatory, and Franchisee's payment of Sales and Support Center Fees is mandatory.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the fees for Sales and Support Center Services are determined by Deer Solution at its discretion. These fees may include fixed overhead and variable fees related to interactions with potential or existing customers. The variable Sales and Support Center Fees will not exceed 8.5% of weekly Gross Sales. However, Deer Solution retains the right to charge per communication fees, provided that these fees do not exceed 8.5% of the franchisee's Gross Sales in any weekly accounting period.
For a prospective Deer Solution franchisee, this means that the Sales and Support Center Fees can fluctuate based on the volume of customer interactions and the franchisee's gross sales. The franchisee must participate in and pay for the Sales and Support Center services. The fees are calculated weekly, with a cap of 8.5% of gross sales, whether calculated as a percentage or based on per-communication charges.
This fee structure implies that franchisees need to carefully monitor their gross sales and the number of customer interactions to anticipate these costs. It also highlights the importance of understanding how Deer Solution defines and measures 'communication' for the purpose of per-communication fees. Franchisees should aim to optimize their sales and customer service processes to maximize revenue while managing these variable costs effectively. It is important to note that Deer Solution has the authority to modify these fees, so franchisees must stay informed of any changes.