What agreements must 'Non-Employed Participants' execute for a Deka Lash franchise?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Non-Employed Participants. All participants that (a) operate in the business, (b) are not listed owners on the franchise agreement, and (c) not formally recognized as employees, including, but not limited to, family members, close friends, significant others, spouses, and children (hereinafter "Non-Employed Participants"), must execute an approved confidentiality, non-disclosure, and non-competition agreement. Additionally, Non-Employed Participants must comply with any and all system policies, and Franchisor shall retain the right to terminate and/or limit any access or privileges.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD pages 47–48)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, 'Non-Employed Participants' must execute specific agreements. These participants are defined as individuals who operate in the business but are not listed as owners on the franchise agreement and are not formally recognized as employees. This category includes family members, close friends, significant others, spouses, and children.
Specifically, all Non-Employed Participants must execute an approved confidentiality, non-disclosure, and non-competition agreement. This requirement ensures that these individuals are legally bound to protect Deka Lash's confidential information, trade secrets, and competitive advantages. Additionally, these participants must comply with all system policies established by Deka Lash.
Deka Lash retains the right to terminate or limit the access or privileges of any Non-Employed Participant who fails to adhere to these agreements or system policies. This provision allows Deka Lash to maintain control over who is involved in the business and to enforce compliance with its standards, even among individuals who are not formal employees or owners. This is a fairly standard practice in franchising to protect the brand and system standards.