Is there a limit to the amount a Deer Solution franchisee must contribute to the Advertising Cooperative?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
see's Deer Solution Business location or Operating Territory, or if such Advertising Cooperative is established during the Term of this Agreement, Franchisee shall fully participate in the Advertising Cooperative and Franchisee shall execute, at the request of Franchisor, all documents required by Franchisor and Franchisee shall become a member of the Advertising Cooperative subject to the terms of those documents;
- (5) Franchisee shall contribute to the Advertising Cooperative in the amounts as determined and required by the Advertising Cooperative or, otherwise in accordance with those documents governing the operation of the Advertising Cooperative; provided, however, Franchisee's contributions to the Advertising Cooperative shall not exceed Franchisee's local minimum marketing obligations set forth in Article 9.B.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, if a franchisee's Deer Solution Business location or operating territory is within the geographic area of an Advertising Cooperative, they must participate in and contribute to it. However, the franchisee's contributions to the Advertising Cooperative are capped. The amount cannot exceed the franchisee's local minimum marketing obligations as outlined in Article 9.B of the franchise agreement. Furthermore, any contributions made to the Advertising Cooperative count towards fulfilling the franchisee's minimum local marketing obligations. This means that franchisees aren't required to spend over their local minimum marketing obligations.
This arrangement benefits franchisees by ensuring their advertising contributions are capped at a predetermined level, preventing excessive or unpredictable costs associated with the Advertising Cooperative. It also allows franchisees to satisfy their local marketing requirements through participation in the cooperative, streamlining their marketing efforts.
However, franchisees should carefully review Article 9.B of the franchise agreement to fully understand their local minimum marketing obligations, as this figure determines the maximum amount they may be required to contribute to the Advertising Cooperative. Franchisees should also note that Deer Solution Businesses owned by the franchisor or its affiliates are not required to contribute to the Advertising Cooperative.