What are the potential consequences for a Deer Solution franchisee who fails to meet the operational standards outlined in Item 8, as described in the non-compliance fees in Item 6?
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
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, a franchisee may incur financial penalties for failing to meet operational standards. Specifically, if a Deer Solution franchisee violates any operational requirement detailed in Article 7, they will be subject to an "Operations Non-Compliance Fee."
The amount of the Operations Non-Compliance Fee varies depending on the nature of the violation. For violations involving the sale of services or products that are not approved by Deer Solution, or for failing to exclusively use System Supplies or designated suppliers, the fee is $1,000 per instance or event. For all other operational violations, the fee is $450.
In addition to these fees, the Deer Solution franchisee is also responsible for covering all costs and expenses incurred by Deer Solution for any inspections, audits, or re-inspections deemed necessary by Deer Solution to determine if the franchisee has corrected the violation. These fees and expenses must be paid within 14 days of the invoice date. It is important to note that these financial penalties do not limit Deer Solution's other rights and remedies as outlined in the Franchise Agreement, and all rights and remedies available to Deer Solution are cumulative.