When is the Testing or Supplier Approval Fee due for a Deer Solution franchise?
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. |
| Management Service | 20% of Gross Sales, plus expenses | As invoiced | Payable if we elect to manage the Franchised Business due to death, disability, a failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager, etc. |
| Collections | Actual fees, costs, and expenses | On demand | For costs and expenses incurred by us in collecting fees due to us, and/or to enforce the terms of the Franchise Agreement or a termination of the Franchise Agreement. Includes costs and expenses of re-inspections required by quality assurance audit. |
| NSF Check Fee of Failed Electronic Fund Transfer | $50 per violation or the maximum amount allowed by law, whichever is greater | As incurred | Payable if your bank account possesses insufficient funds and/or fails to process a payment or transfer related to a fee due from you to us. |
| Indemnification | Actual cost incurred by us | As incurred | The amount payable is the amount of any claim, liability, or loss we incur from your Franchised Business. |
| Post-Termination or | Costs and expenses | As incurred | The amount payable is the amount of |
| Post-Expiration | any claim, liability, or loss we incur | ||
| Expenses | from your Franchised Business. | ||
| Testing or Supplier Approval Fee | Actual fees, costs, and expenses | Within 14 days of invoice | You must pay us the costs incurred by us to review and evaluate a potential supplier, product, or service that you submit to us for approval. |
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the Testing or Supplier Approval Fee is due within 14 days of the invoice date. This fee covers the costs Deer Solution incurs to review and evaluate any potential supplier, product, or service that a franchisee submits for approval.
This means that if a Deer Solution franchisee wants to use a different supplier or product than those already approved by the franchisor, they will be responsible for covering the costs associated with Deer Solution's review and approval process. The franchisee must pay these costs within 14 days after receiving an invoice from Deer Solution.
It is important for prospective Deer Solution franchisees to understand that the Testing or Supplier Approval Fee is in addition to other fees outlined in Item 6 of the FDD. Franchisees should carefully consider these potential costs when evaluating the overall financial investment required to operate a Deer Solution franchise. This fee is not a fixed amount, but rather depends on the actual costs and expenses incurred by Deer Solution during the review process.