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What are the specific pre-opening obligations of a Deer Solution franchisee (Item 9), and how do these relate to the estimated initial investment costs outlined in Item 7, considering the lack of financing options in Item 10?

Deer_Solution Franchise · 2025 FDD

Answer from 2025 FDD Document

tation or set up costs.

Note 6: Initial Inventory – You must purchase an initial opening inventory of deer repellent concentrate and additional sales materials. Based on the activity of your Deer Solution Business you will be required to continuously restock, replenish, maintain, and replace your supplies, equipment, and inventory.

Note 7: Signage – You are required to purchase, subject to our design and construction specifications and approval, portable and promotional signs and displays that we designate.

Note 8: Computer, Software and Business Management System – You are required to purchase, license, and use the business management systems, ordering systems, and applications that we designate, as well as laptops, USB bar code scanners, tablets, and phones. Information about the business management and computer systems are disclosed in Item 11 of this Disclosure Document.

Note 9: Service Vehicle – You must use a Deer Solution branded and wrapped service vehicle for all customer visits. This estimate is for three months of finance installment payments for one service vehicle. These payments will be an on-going expense throughout the operation of your Deer Solution Business. This estimate also includes the vehicle wrap, cap, and cargo slide. The service vehicle must meet our standards and specifications, be registered and insured as a commercial vehicle, be wrapped in accordance with our brand standards and specifications, and be in a relatively new and clean condition. Typical vehicles that we approve include pickup trucks such as the Ford Maverick and commercial cargo vans.

Note 10: Start-Up Marketing Expense – You must spend a minimum of $15,000 prior to and during the initial three month period following the opening of your Deer Solution Business. The start-up marketing expense is in addition to your local marketing requirement and does not count towards satisfaction of your annual local marketing requirement. At least $10,000 of the start-up marketing expense must be paid to our affiliate, R3volution Brands Inc., to conduct the start-up online marketing on behalf of the Franchised Business.

Note 11: Insurance Deposits – Three Months – You are required to maintain certain insurance coverage. Your actual payments for insurance and the timing of those payments will be determined based on your agreement with your insurance company and agent. This estimate is for the cost of an initial deposit to obtain the minimum required insurance and, we estimate this deposit to be equal to the amount of three months of monthly insurance premium payments. We recommend that you consult with your insurance agent before signing a Franchise Agreement.

Note 12: Travel for Initial Training – You must complete our pre-opening training program before opening your Deer Solution Business. We do not charge a fee for our pre-opening initial training. This estimate is for estimated travel and lodging expenses that you will incur to attend our pre-opening initial training program.

Note 13: Professional Fees – This estimate is for costs associated with the engagement of professionals such as attorneys, and accountants for advisories consistent with the start-up of a Deer Solution Business. We recommend that you seek the assistance of professional advisors when evaluating this franchise opportunity, this Disclosure Document, the Franchise Agreement. It is also advisable to consult these professionals to review any lease and other contracts that you will enter into as part of the development and operation of your Deer Solution Business.

Note 14: Licenses and Permits – You must apply for, obtain, and maintain all required permits and licenses necessary to operate a Deer Solution Business.

What This Means (2025 FDD)

According to Deer Solution's 2025 Franchise Disclosure Document, franchisees face several pre-opening obligations that directly impact their initial investment. These obligations encompass various aspects, from securing necessary equipment and inventory to adhering to marketing and branding requirements. Item 7 details the estimated costs associated with these obligations, while Item 10 clarifies that Deer Solution does not offer financing options, meaning franchisees must cover these expenses through their own resources.

One significant pre-opening obligation is the initial marketing spend. A Deer Solution franchisee is required to spend a minimum of $15,000 on marketing before and during the first three months of operation. Notably, at least $10,000 of this amount must be directed to Deer Solution's affiliate, R3volution Brands Inc., for online marketing services. This upfront marketing investment is in addition to ongoing local marketing requirements. Franchisees must also purchase signage, a computer system, software, and a Deer Solution branded vehicle, all of which must meet the franchisor's specifications. The cost of the vehicle includes the vehicle wrap, cap, and cargo slide, and the estimate in Item 7 includes three months of finance installment payments.

Further pre-opening obligations include purchasing an initial inventory of deer repellent concentrate and sales materials, as well as securing necessary licenses and permits. Franchisees are also expected to cover travel and lodging expenses for the mandatory pre-opening training program. Additionally, Deer Solution emphasizes the importance of engaging professional advisors like attorneys and accountants, the fees for which are also part of the estimated initial investment. The franchisee must also purchase printing, stationery, and office supplies from Deer Solution or its approved suppliers.

Given that Deer Solution does not provide financing, prospective franchisees must carefully consider these pre-opening obligations and associated costs. They should ensure they have sufficient capital to meet these requirements, as failure to do so could impede their ability to launch and operate the franchise successfully. The FDD recommends consulting with professional advisors and insurance agents to fully understand the financial implications and obligations before signing the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.