When is the Quality Assurance Audit fee due for a Deer Solution franchisee?
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 payable 'as invoiced.' This means that Deer Solution franchisees are required to pay the fee upon receiving an invoice from the franchisor.
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, which may include mystery shopper programs. This fee is intended to cover the expenses Deer Solution incurs to ensure that franchisees are maintaining the brand's standards and providing quality service.
It is important for prospective Deer Solution franchisees to understand that these audits can occur periodically, and the costs can vary depending on the scope and nature of the audit. Therefore, franchisees should budget for these potential expenses and maintain operational compliance to minimize the likelihood of incurring such fees. Franchisees should also clarify with Deer Solution what triggers a quality assurance audit and how frequently they are typically conducted to better anticipate these costs.