What triggers the Payment Non-Compliance fee for a Deer Solution franchisee?
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. |
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, a franchisee will be charged a Payment Non-Compliance fee of $150 per occurrence for failing to make payments on time for any fees or payments due to Deer Solution under the Franchise Agreement. In addition to the $150 fee, the franchisee is also responsible for interest, costs, and legal fees associated with the late payment. The FDD does not specify the interest rate or how legal fees are calculated.
This fee is designed to ensure that Deer Solution franchisees adhere to the payment terms outlined in their agreements. It covers any type of fee that is not paid on time, which could include royalty fees, brand development fund fees, technology fees, or any other fees specified in the Franchise Agreement. The Payment Non-Compliance fee is in addition to any other penalties or remedies that Deer Solution may pursue for the late payment, such as legal action or termination of the franchise agreement.
Prospective franchisees should be aware of this fee and ensure they have sufficient financial resources to meet their payment obligations to Deer Solution. It is crucial to understand all the fees and payment schedules outlined in the Franchise Agreement to avoid incurring this penalty. Franchisees should also maintain open communication with Deer Solution regarding any potential payment issues to mitigate the risk of non-compliance fees and potential legal ramifications.