When starting a Deer Solution franchise, is the initial franchise fee refundable?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
- Item 5, "Initial fees", Item 5 is supplemented by the addition of the following:
Refund and cancellation provisions will be inapplicable to franchises operating under North Dakota Law, North Dakota Century Code Annotated Chapter 51-19, Sections 51-19-01 through 51-19-17. If franchisor elects to cancel this Franchise Agreement, franchisor will be entitled to a reasonable fee for its evaluation of you and related preparatory work performed and expenses actually incurred.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to the 2025 Deer Solution Franchise Disclosure Document, the initial franchise fee's refundability depends on the state where the franchise operates. Specifically, for franchises operating under North Dakota law, the standard refund and cancellation provisions do not apply. However, if Deer Solution elects to cancel the Franchise Agreement in North Dakota, they may charge a reasonable fee to cover the costs of evaluating the franchisee and any preparatory work and expenses incurred.
This means that prospective Deer Solution franchisees in North Dakota should be aware that the initial franchise fee may not be refundable under the same conditions as in other states. If Deer Solution cancels the agreement, they can retain a portion of the fee to cover their expenses. This is a critical consideration for potential franchisees in North Dakota, as it deviates from the standard refund policies that may be in place elsewhere.
For prospective Deer Solution franchisees outside of North Dakota, the FDD excerpt does not provide specific details regarding the refundability of the initial franchise fee. It is important to carefully review Item 5 of the FDD, which typically covers initial fees, to understand the conditions under which a refund may be possible. Additionally, potential franchisees should discuss the refund policy with Deer Solution directly to clarify any uncertainties and ensure they are fully informed before signing the franchise agreement.