Can Deer Solution pre-deduct certain fees from a franchisee's Gross Sales?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) Software Fee Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees a continuing monthly non-refundable software fee (the "Software Fee"). Franchisor reserves the right to increase the Software Fee at any time in the future. The Software Fee, as applicable and at Franchisor's election, may be pre-deducted by Franchisor from Gross Sales.
- (7) Professional Referral Fee –Franchisee shall participate in the Professional Referral Program. As a part of the Professional Referral Program, professionals, which can be individuals, businesses, or organizations that provide landscaping, pest control, gardening, nursery, landscape architecture, tree care services, or related services or products (the "Professional"), may refer leads located in Franchisee's Operating Territory to Franchisee. Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees a continuing monthly non-refundable fee equal to 10% of Gross Sales from the lead (the "Professional Referral Fee").
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, Deer Solution has the option to pre-deduct the Software Fee from a franchisee's Gross Sales. The Software Fee is a continuing monthly non-refundable fee that the franchisee must pay to Deer Solution, its affiliates, or designees. Deer Solution retains the right to increase this Software Fee at any time in the future.
In addition to the Software Fee, franchisees are also required to participate in the Professional Referral Program. As part of this program, professionals in related industries may refer leads to the franchisee's operating territory. For each lead that converts to a sale, the franchisee must pay Deer Solution, its affiliates, or designees a continuing monthly non-refundable Professional Referral Fee equal to 10% of the Gross Sales from that lead.
It is important for prospective Deer Solution franchisees to understand that the Software Fee may be pre-deducted from Gross Sales, and the Professional Referral Fee will be calculated based on a percentage of Gross Sales from referred leads. Franchisees should factor these fees into their financial projections and business plans.