What is the trigger for Post-Termination or Post-Expiration Expenses 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. |
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, franchisees may incur post-termination or post-expiration expenses. These expenses are triggered by any claim, liability, or loss that Deer Solution incurs as a result of the franchisee's Deer Solution Business. The amount payable by the franchisee is the actual costs and expenses incurred by Deer Solution. Payment is due as the costs are incurred.
This means that if a former Deer Solution franchisee's actions or inactions with their previous franchise lead to a claim or loss for Deer Solution after the franchise agreement has ended (either through termination or expiration), the franchisee is responsible for covering those costs. This could include legal fees, settlements, or any other expenses Deer Solution incurs as a result of the franchisee's prior business operations.
Franchisees should be aware of this potential liability and ensure they operate their Deer Solution business in compliance with all applicable laws and the franchise agreement to minimize the risk of incurring post-termination or post-expiration expenses. It is also important to maintain adequate insurance coverage to protect against potential claims or losses.