What was the total amount of royalties paid to related parties by Deer Solution in 2024?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
nt fees expenses paid to James J Messina Landscaping Inc., R3volution brands., and VIP Rewards Center, LLC.
The related parties' transactions in the years ending December 31, 2024 and 2023 were as follows:
| 2024 | 2023 | ||
|---|---|---|---|
| Due from related parties | $ 550 | $ | - |
| Referral fee expense - related parties | 8,360 | - | |
| IP Licensing – related parties | 5,000 | ||
| Legal and professional - related parties | 68,000 | (=) | |
| Advertising and marketing – related parties | 206,000 | - | |
| Management fees expense - rel |
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the total amount of royalties paid to related parties in 2024 was $62,547. The FDD provides a detailed breakdown of various expenses and fees involving related parties, offering transparency into the financial transactions between Deer Solution and its affiliates. This information is crucial for prospective franchisees to assess the financial health and operational relationships of the franchisor.
Understanding the nature and extent of transactions with related parties is essential for evaluating potential conflicts of interest and assessing the overall financial stability of Deer Solution. The amounts listed, such as the $62,547 in royalties, provide insight into how Deer Solution manages its financial obligations and relationships with affiliated entities. This level of detail allows potential franchisees to make informed decisions based on a clear understanding of the franchisor's financial practices.
In addition to royalties, the FDD lists other expenses involving related parties, such as referral fees, IP licensing, legal and professional fees, advertising and marketing expenses, management fees, and brand development fund contributions. Reviewing these figures alongside the royalty payments offers a comprehensive view of the financial interactions between Deer Solution and its related parties. This information helps potential franchisees evaluate the financial risks and opportunities associated with investing in a Deer Solution franchise.