Under what circumstances may Deer Solution directly collect the Gross Sales of a franchisee's business?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
ebit your bank account. We may, at our election,
directly collect the Gross Sales of your Dee Solution Business and we will pre-deduct all of the fees and payments due to us, our affiliates, or our designated supplies, and we will remit the balance to you.
Note 2: Royalty Fees – You must pay to us a continuing royalty fee (the "Royalty Fee"). The Royalty Fee is a continuing weekly fee equal to 8% (the "Royalty Rate") of your weekly Gross Sales. In the event we receive Gross Sales directly from the customer of your Deer Solution Business, we may charge the Royalty Fee instantly. If any federal, state, or local tax other than an income tax is imposed on the Royalty Fee which we cannot directly, and dollar for dollar, offset against taxes required to be paid under any applicable federal or state laws, you must compensate us in the manner prescribed by us so that the net amount or net effective Royalty Fees received by us is not less than 8% of your Gross Sales.
Source: Item 6 — OTHER FEES (FDD pages 14–19)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, Deer Solution has the option to directly collect the Gross Sales of a franchisee's business. If Deer Solution exercises this option, they will pre-deduct all fees and payments owed to them, their affiliates, or their designated suppliers before remitting the remaining balance to the franchisee.
This arrangement requires the franchisee to deposit all Gross Sales into designated bank accounts that are subject to Deer Solution's ACH authorization. The franchisee is also responsible for installing and using the payment, business management, and electronic transfer systems that Deer Solution mandates. Furthermore, the franchisee must cover all bank service charges and fees associated with these electronic debits.
In the event that Deer Solution directly receives Gross Sales from a customer of a franchisee's Deer Solution Business, they may immediately deduct the Royalty Fee, which is 8% of the weekly Gross Sales. This direct collection mechanism ensures that Deer Solution can promptly secure its Royalty Fees from customer payments.