When is the Quality Assurance Audit fee due 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 is due "As invoiced." This means that Deer Solution franchisees will be required to pay the fee upon receiving an invoice from the franchisor for the actual costs incurred by Deer Solution.
The FDD specifies that this fee is payable if Deer Solution engages a third party to conduct periodic quality assurance audits, which may include mystery shopper programs. The fee covers the actual costs incurred by Deer Solution for these audits.
This type of fee structure, where franchisees reimburse the franchisor for specific expenses, is relatively common in franchising. It ensures that the franchisee bears the cost of services or audits that directly benefit their business or are necessary to maintain brand standards. Franchisees should budget for these potential audit costs and ensure they understand the scope and frequency of quality assurance audits.