Is the Deer Solution Royalty Fee refundable?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
ased (hereinafter, the "30 Day Cure Notice"). Franchisee agrees that the 30 Day Cure Notice is a strict condition precedent to Franchisee commencing, or otherwise instituting, legal action or proceeding against Franchisor for any reason whatsoever.
ARTICLE 17 OBLIGATIONS UPON TERMINATION, EXPIRATION AND CONTINUING OBLIGATIONS
17.A. PAYMENT OF AMOUNTS OWED TO FRANCHISOR
Without limitation as to any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.
17.B. CEASE OPERATIONS AND PROTECTION OF THE SYSTEM
Upon expiration, termination, or Transfer of this Agreement for any reason, Franchisee shall immediately:
- (1) Permanently cease to be a franchise owner of the Deer Solution Business that was the subject of this Agreement and cease to operate such Deer Solution Business under the System;
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
The 2025 Deer Solution Franchise Disclosure Document does not explicitly state whether the royalty fee is refundable. However, it does state that upon termination of the agreement for any reason, the franchisee must immediately pay all sums and fees due, including Royalty Fees and Advertising Contributions. This suggests that royalty fees are not refundable, as the franchisee is obligated to pay them even upon termination.
Additionally, the FDD states that the franchisee does not have the right to offset or withhold any payment, fee, or any other amount payable to Deer Solution, including the Royalty Fee and Advertising Contributions, due to alleged nonperformance or breach by Deer Solution. This reinforces the idea that royalty fees are non-refundable, as the franchisee cannot withhold payment even if they have a claim against Deer Solution.
While the FDD does not use the word "non-refundable", the document makes it clear that all outstanding royalty fees must be paid to Deer Solution upon termination or expiration of the franchise agreement. A prospective franchisee should seek clarification from Deer Solution on the specific conditions, if any, under which a refund of royalty fees might be considered.