What promotional discounts are excluded from the Gross Sales calculation for a Deer Solution franchise?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 3: Gross Sales – "Gross Sales" means the total dollar sales from all business and customers of your Deer Solution Business and includes the total gross amount of revenues and sales from whatever source derived, whether in form of cash, credit, agreements to pay or other consideration including the actual retail value of any goods or services traded, borrowed, or received by you in exchange for any form of non-money consideration (whether or not payment is received at the time of the sale), from or derived by you or any other person or Corporate Entity from business conducted or which started in, on, from or through your Deer Solution Business and/or your operating territory, whether such business is conducted in compliance with or in violation of the terms of the Franchise Agreement. Gross Sales include the total gross amount of revenues and sales from whatever source derived from and/or derived by you including, any person and/or Corporate Entity acting on your behalf, from business conducted within and/or outside your operating territory that is related to your Deer Solution Business and/or a competitive business located and/or operated within your operating territory, outside your operating territory, and/or otherwise. Gross Sales do not include (a) sales taxes that you collect and remit to the proper taxing authority, and (b) authorized promotional discounts that you provide to customers.
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, Gross Sales are used to calculate royalty fees, brand development fund fees, and other payments. It is important for prospective franchisees to understand what is included and excluded from this calculation, as it directly impacts their financial obligations to Deer Solution. Gross Sales encompass the total dollar sales from all business and customers, including revenues from various sources, such as cash, credit, and traded goods or services. This includes business conducted within or outside the franchisee's operating territory related to the Deer Solution business.
However, the FDD specifies certain exclusions from the Gross Sales calculation. Specifically, sales taxes that the franchisee collects and remits to the proper taxing authority are excluded. Additionally, authorized promotional discounts that the franchisee provides to customers are also excluded from Gross Sales. This means that franchisees do not have to pay royalty fees or brand development fund fees on the portion of revenue reduced by these discounts.
It is crucial for prospective Deer Solution franchisees to ensure they understand which promotional discounts are considered "authorized" by Deer Solution. Unauthorized discounts would likely still be included in the Gross Sales calculation, increasing the franchisee's financial obligations. Franchisees should seek clarification from Deer Solution regarding the types of promotional discounts that are pre-approved and how to obtain authorization for new discount programs to ensure accurate Gross Sales reporting and fee calculation.