How does Deer Solution specify and instruct payment of fees?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 1: Type of Fee – The above table describes fees and payments that you must pay to us, our affiliates, or that our affiliates may impose or collect on behalf of a third party. All fees are uniformly imposed for all franchises offered under this Disclosure Document, are recurring, are not refundable, and are payable to us, unless otherwise specified. Payment is subject to our specification and instruction, including our election to have all fees automatically drafted from your business bank account or automatically debited or charged to your business bank account. You will be required to sign an ACH Authorization Form (Franchise Agreement, Exhibit 4) permitting us to electronically debit your designated bank account for payment of all fees payable to us and/or our affiliates. You must deposit the Gross Sales of your Deer Solution Business into the designated bank accounts that are subject to our ACH authorization. You must install and use, at your expense, the pre-authorized payment, business management system, credit card processing, automatic payment, automated banking, electronic debit and/or electronic funds transfer systems that we designate and require in the operation of your Deer Solution Business. You must pay all service charges and fees charged to you by your bank so that we may electronically debit your bank account. We may, at our election,
directly collect the Gross Sales of your Dee Solution Business and we will pre-deduct all of the fees and payments due to us, our affiliates, or our designated supplies, and we will remit the balance to you.
Note 2: Royalty Fees – You must pay to us a continuing royalty fee (the "Royalty Fee"). The Royalty Fee is a continuing weekly fee equal to 8% (the "Royalty Rate") of your weekly Gross Sales. In the event we receive Gross Sales directly from the customer of your Deer Solution Business, we may charge the Royalty Fee instantly. If any federal, state, or local tax other than an income tax is imposed on the Royalty Fee which we cannot directly, and dollar for dollar, offset against taxes required to be paid under any applicable federal or state laws, you must compensate us in the manner prescribed by us so that the net amount or net effective Royalty Fees received by us is not less than 8% of your Gross Sales.
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, all fees are uniformly imposed, recurring, and not refundable, unless otherwise specified. Payment to Deer Solution is subject to their specification and instruction, including the option to have fees automatically drafted from the franchisee's business bank account.
As a Deer Solution franchisee, you will be required to sign an ACH Authorization Form, which is Exhibit 4 of the Franchise Agreement, allowing Deer Solution to electronically debit your designated bank account for all payable fees. The franchisee must deposit all gross sales into designated bank accounts subject to ACH authorization. Deer Solution requires franchisees to install and use pre-authorized payment, business management, credit card processing, automatic payment, automated banking, electronic debit, and electronic funds transfer systems that Deer Solution designates. The franchisee is responsible for all service charges and fees charged by their bank for electronic debits.
Deer Solution has the option to directly collect the gross sales of the Deer Solution business and pre-deduct all fees and payments due to them, their affiliates, or designated suppliers, remitting the balance to the franchisee. For the royalty fee, which is a continuing weekly fee equal to 8% of weekly gross sales, Deer Solution may charge the royalty fee instantly if they receive gross sales directly from the customer.
Furthermore, the FDD outlines various non-compliance fees related to reporting and payments. For instance, failure to timely submit reports results in a $150 fee per occurrence, while payment non-compliance also incurs a $150 fee per occurrence, in addition to interest, costs, and legal fees. These fees are payable within 14 days of the invoice for reporting and operations non-compliance, while other non-compliance fees are due on demand or as incurred.