What are the variable considerations included in the Deer Solution franchise agreement?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limitation as to any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
Based on the 2025 Deer Solution Franchise Disclosure Document, variable considerations primarily involve Royalty Fees, Advertising Contributions, and other sums and fees due for products and services, including System Supplies. These payments are contingent upon the franchisee's operation and are tied to the franchisee's performance and usage of the Deer Solution system.
Specifically, upon the expiration or termination of the Franchise Agreement, the franchisee must immediately pay all outstanding amounts to Deer Solution. This includes not only Royalty Fees and Advertising Contributions but also any other fees owed to Deer Solution, its affiliates, or suppliers for products and services like System Supplies. This clause ensures that all financial obligations are settled promptly when the franchise relationship ends.
This requirement is standard in franchising, as franchisors rely on these ongoing fees to support the brand, provide services, and maintain the system. Franchisees should carefully review the terms related to these variable considerations to understand how they are calculated and when they are due, as these can significantly impact the profitability and cash flow of the Deer Solution franchise.