What was the total amount of royalties received by Deer Solution in 2023?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
s of the Statement of cash flows, cash equivalents include bank accounts and cash in transit for bank deposits with maturities of three months or less to be cash equivalents.
C. Brand Development Fund
The Company collects funds from franchisees to manage the brand level advertising, marketing and development program. The fee is based on a percentage of the gross sales less any amount paid towards sales tax, payable weekly.
D. Accounts Receivable
Accounts receivable arise primarily from initial franchise fees, brand funds, management fees and royalties are carried at their estimated collectible amounts, net of any estimated allowances for doubtful accounts.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
Based on the 2025 Deer Solution Franchise Disclosure Document, while the document discusses the collection of royalties, it does not specify the total amount of royalties Deer Solution received in 2023. The document describes that royalties are part of accounts receivable. It also states that the company collects funds from franchisees to manage brand level advertising, marketing, and development programs. This fee is based on a percentage of gross sales less any amount paid towards sales tax, payable weekly.
Because the FDD does not state the specific royalty amount, a prospective franchisee should consider asking Deer Solution for the company's audited financial statements. These statements would provide a detailed breakdown of revenue sources, including royalties, and offer a clearer picture of the company's financial performance.
Understanding the total royalties received by Deer Solution is crucial for potential franchisees. It can provide insights into the overall health and performance of the franchise system. This information can help franchisees assess the potential return on investment and the financial stability of the franchisor.