What does the Quality Assurance Audit fee cover for a Deer Solution franchise?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
| Reporting Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit Royalty and Activity Reports, and other reports and financial statements as required under Franchise Agreement. |
|---|---|---|---|
| Operations Non-Compliance | $450 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required and specified under Franchise Agreement, plus inspection and re- inspection costs incurred by us. |
| Payment Non-Compliance | $150 per occurrence | Payable for failure to timely pay, when due, a fee or payment due to us under the Franchise Agreement, plus interest, costs, and legal fees. | |
| Non-Compliance | Actual fees, costs, and expenses | On demand | Fees, costs, and expenses incurred by us as a result of your breach or non- compliance with the terms of your Franchise Agreement. |
| Legal Fees and Expenses | Costs and expenses | As incurred | This fee includes, but is not limited to, attorneys’ fees for any failure to pay amounts when due or failure to comply in any way with the Franchise Agreement. |
| Audit | Cost of audit | On demand | For costs incurred by us for each financial audit, provided the audit determines underreporting of 2% or greater during any designated audit period. Includes fees incurred by us including audit, legal, travel and reasonable accommodations. |
| Quality Assurance Audit | Actual costs incurred by us | As invoiced | Payable if we engage a third party to perform periodic quality assurance audits, including mystery shopper programs. |
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the Quality Assurance Audit fee covers the actual costs incurred by Deer Solution if they engage a third party to perform periodic quality assurance audits, including mystery shopper programs. This means that if Deer Solution decides to use an outside company to assess the quality of your franchise's operations, you will be responsible for paying the costs they incur.
The fee is payable as invoiced, meaning you'll need to pay it when you receive the bill from Deer Solution. This differs from some other fees, which may have fixed amounts or specific payment schedules. The fact that the fee covers "actual costs" means it could vary significantly depending on the scope and nature of the audit performed.
Prospective Deer Solution franchisees should consider that quality assurance audits, including mystery shopper programs, are a way for Deer Solution to ensure that franchisees are adhering to brand standards and providing consistent service. While the fee itself can be unpredictable, it is important to maintain high operational standards to avoid triggering such audits or incurring additional costs related to non-compliance. Franchisees should inquire with Deer Solution about the typical scope and frequency of these audits to better estimate potential costs.