What were the total operating expenses for Deer Solution in 2023?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
| |
| Members' equity | | 99,892 | | Total Members' Equity | | 99,892 | | Total Liabilities and Members' Equity | $ | 350,606 |
Deer Solution Franchising, LLC Statement Of Operations Year Ended December 31, 2023
| 2023 | ||
|---|---|---|
| Revenues | ||
| Initial franchise fees | $ | 50,143 |
| Royalties | 33,500 | |
| Brand development fund | 8,401 | |
| Solution Center | 27,232 | |
| Total Revenues | 119,276 | |
| Operating Expenses | ||
| Advertising and marketing | 1,000 | |
| Insurance | 5,560 | |
| Commissions | 67,857 | |
| Professional and legal fees | 11,500 | |
| G |
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the total operating expenses for the company in 2023 were $135,687. The operating expenses included advertising and marketing costs of $1,000, insurance expenses of $5,560, commission expenses of $67,857, professional and legal fees of $11,500, general and administrative expenses of $11,770, and related party management fees of $38,000.
It is important to note that these expenses are specific to Deer Solution Franchising, LLC, and may not be representative of the expenses a franchisee will incur. A prospective franchisee should carefully review these expenses and consider how they might differ in their own specific circumstances. Factors such as location, marketing strategies, and management style can significantly impact operating expenses.
Understanding the franchisor's operating expenses can provide insight into how Deer Solution manages its own business and allocates resources. While not directly indicative of a franchisee's potential profitability, it offers a benchmark for comparison and can inform financial planning. Franchisees should develop their own detailed financial projections, taking into account their local market conditions and business plan, and compare those projections to the franchisor's expenses.