What is the operations non-compliance fee that a Deer Solution franchisee must pay for all other Operations Violations not specifically involving unapproved services/products or unapproved suppliers?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
continuation thereof, shall be exclusively determined by Franchisor in Franchisor's Reasonable Business Judgment. The Management Service Fee shall be immediately payable upon invoice by us.
- (4) Franchisee shall, at all times, maintain sufficient working capital to fulfill its obligations under this Agreement.
7.J. REMEDIES FOR NON-COMPLIANCE WITH OPERATIONAL STANDARDS
In addition to all other rights afforded to Franchisor under this Agreement, in connection with any, each, and every violation of any term, provision, and/or operational requirement as set forth in this Article 7 (an "Operations Violation"), within 14 days of Franchisor's invoice, Franchisee shall pay to Franchisor an operations non-compliance fee (the "Operations Non-Compliance Fee") in the amount of: (a) $1,000 for each and every instance / event related to an Operations Violation involving the sale of services and/or products that are not Approved Services and Products; (b) $1,000 for each and every instance / event related to an Operations Violation involving the failure to exclusively use System Supplies, and/or Franchisor designated suppliers; and (c) $450 for all other Operations Violation. Additionally, in each of the foregoing instances, within 14 days of Franchisor's invoice, Franchisee shall pay to Franchisor all costs and expenses incurred by Franchisor in connection with any inspections, audits, and/or re-inspections directed and/or undertaken by Franchisor for the purpose, as determined by Franchisor in Franchisor's Reasonable Business Judgment, of determining whether or not Franchisee's Operations Violation has been cured in accordance with Franchisor's standards and specifications. The fo
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees must pay an operations non-compliance fee for violations of operational standards. Specifically, if a Deer Solution franchisee commits an operations violation not involving the sale of unapproved services/products or the failure to exclusively use system supplies and/or franchisor-designated suppliers, the franchisee will be assessed a fee of $450 for each instance or event.
In addition to the $450 fee, the franchisee is also responsible for covering all costs and expenses incurred by Deer Solution for any inspections, audits, or re-inspections. These inspections are conducted to determine if the franchisee has corrected the operations violation according to Deer Solution's standards. These payments must be made within 14 days of the invoice date.
It's important to note that these fees do not represent Deer Solution's approval or acceptance of the operational violations. Deer Solution retains all other rights and remedies available under the franchise agreement, and all rights and remedies are cumulative.