What ongoing fees is the Deer Solution company-owned outlet not obligated to pay, unlike franchisees?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Material financial and operational characteristics that are reasonably anticipated to differ from future operational franchise outlets include: (a) managerial skill and efficiency experienced by our Company Owned Outlet as a result of our extensively experienced management team; (b) brand recognition within the local markets in which our Company Owned Outlet operates; and (c) no obligation to pay ongoing fees that a franchisee will pay to us, such as Royalty Fees and Brand Development Fund Fees.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 45–52)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the company-owned outlet in Fairfield, New Jersey, unlike franchisees, does not have an obligation to pay certain ongoing fees. Specifically, the company-owned outlet is not required to pay Royalty Fees and Brand Development Fund Fees. These fees are normally paid by franchisees to Deer Solution.
Royalty Fees for franchisees are 8% of Gross Sales. The Brand Development Fund Fee is currently 2% of Gross Sales but may be increased to 3%.
This exemption from ongoing fees provides the company-owned outlet with a financial advantage compared to franchised locations. This difference should be considered when comparing the financial performance of the company-owned outlet to that of franchise outlets. Prospective franchisees should be aware of these fee obligations and factor them into their financial projections.