What accounting data does Deka Lash require access to?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Independent Access to Information. We have, and you are required to provide, independent access to the information that will be generated or stored in your computer systems, which includes, but not limited to, customer, transaction, and operational information. You must, at all times, give us unrestricted and independent electronic access to your studio information including, but not limited to, your studio software, appointment software and point-of-sale system, for the purposes of obtaining information about the studio. We have the right to review your business operations in person, by mail, or electronically, and to inspect your operations and obtain your paper and electronic business records, including review of your accounting data (we require you use Intuit Quickbooks Online), related to the Franchised Business and any other operations taking place through your Franchised Business. We reserve the right to require you to provide automated electronic access of your accounting data to a business intelligence software application we designate. If, as part of a review of your business, we request a copy of any business records, you must send us at your expense these records within three business days of receiving our request.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–40)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash requires franchisees to provide unrestricted and independent electronic access to their studio information. This includes access to the studio's software, appointment software, and point-of-sale system for the purpose of obtaining information about the studio.
Deka Lash has the right to review a franchisee's business operations in person, by mail, or electronically. This includes the right to inspect operations and obtain paper and electronic business records, including a review of accounting data. Deka Lash requires franchisees to use Intuit QuickBooks Online for their financial record keeping.
Furthermore, Deka Lash reserves the right to require franchisees to provide automated electronic access of their accounting data to a business intelligence software application that Deka Lash designates. If Deka Lash requests a copy of any business records as part of a business review, the franchisee must send these records at their own expense within three business days of receiving the request.
This level of access allows Deka Lash to monitor the financial performance of its franchisees, ensure compliance with the franchise agreement, and potentially offer support or guidance to improve business operations. For a prospective franchisee, this means maintaining meticulous and transparent financial records using the specified software and being prepared to share this information promptly with Deka Lash.