What is the payment method for the Deer Solution Brand Development Fund Fee?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company collects funds from franchisees to manage the brand level advertising, marketing and development program. The fee is based on a percentage of the gross sales less any amount paid towards sales tax, payable weekly.
- (1) If Franchisor institutes the Brand Development Fund, Franchisee shall pay, on the Due Date, a mandatory and continuing fee to the Brand Development Fund in an amount equal to a percentage of Gross Sales (as determined and designated by Franchisor in Franchisor's Reasonable Business Judgment) and, in accordance with the payment terms of Article 5.E. of this Agreement (the "Brand Development Fund Fee"), provided, however, Franchisee will not be required to contribute more than 3% of the Gross Sales of the Franchised Business for each weekly Accounting Period;
- (2) Franchisor will provide Franchisee with written notice of the Brand Development Fund Contribution Percentage. Upon such written notice to Franchisee, the Brand Development Fund Fee be paid by Franchisee to the Brand Development Fund and/or, at Franchisor's election, prededucted from Franchisee's Gross Sales by Franchisor and shall be applicable at all times thereafter throughout the Term, except as may be otherwise designated by Franchisor in writing. The Brand Development Fund Fee shall be paid to Franchisor on the Due Date and in accordance with the payment terms and method set forth in Article 5.B. for the payment of Royalty Fees;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, the Brand Development Fund Fee is based on a percentage of gross sales less any amount paid towards sales tax, and it is payable weekly. The franchisee must pay the Brand Development Fund Fee on the due date, as determined by Deer Solution, according to the payment terms outlined in Article 5.E of the agreement.
Deer Solution will provide written notice to the franchisee regarding the Brand Development Fund Contribution Percentage. Upon receiving this notice, the franchisee must pay the Brand Development Fund Fee, or Deer Solution may elect to pre-deduct it from the franchisee's gross sales. This payment method remains applicable throughout the term of the agreement unless otherwise specified in writing by Deer Solution.
The Brand Development Fund Fee is paid to Deer Solution on the due date, following the payment terms and method outlined in Article 5.B for royalty fees. The FDD states that the franchisee will not be required to contribute more than 3% of gross sales for each weekly accounting period.