What aspects of the Deka Lash unit are considered intellectual property and proprietary to Deka Lash?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
ocuments (whether or not such disclosure is required by law), or to a prospective transferee of your Franchise or of the Franchise Premises or to any other prospective purchaser of us or any other franchise from us.
Studio Design, Furniture, Fixtures, and Equipment. Your unit's design, layout, color patterns, signage, supplies, furniture, fixtures, and equipment are considered intellectual property and proprietary to us and as such, we retain all rights and control associated therewith. As such, upon termination or expiration of your Franchise Agreement, at our option, you will offer to us the right to purchase from you any or all of the furniture, equipment, signage, fixtures, and supplies within 30 days of the date of termination for the adjusted book value, which is the undepreciated book value of the assets on your most recently filed federal tax return prior to the date of the termination or expiration. If we elect not to purchase any or part of the furniture, equipment, signage, fixtures, and supplies to a current franchisee of ours, or destroy the furniture, equipment, signage, fixtures, and supplies such that they cannot be re-used.
Upon termination of your franchise agreement, you must return to us our Operations Manuals and any Confidential Information, including Customer Data. You may never - during the initial term, any renewal term, or after the Franchise Agreement expires or is terminated - reveal any of our Confidential Information to any other person or entity or use it for the benefit of any other person or business.
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS
You must provide franchise services under your direct supervision and control or under the direct supervision and control of a full-time studio manager who has attended and passed our initial training. You and your spouse must be able to pass a criminal background check. Your studio manager (if applicable) and all employees that have access to client accounts or as required by local law, must be able to pass a criminal background check.
You must ensure that your studio managers comply fully with all applicable terms of the franchise agreement including maintaining all confidential information, not competing with us, and safeguarding all relevant documents, manuals, etc.
Principal Owner. You must designate one, and only one, owner with at least 10% ownership as the "Principal Owner." The Principal Owner is the primary owner responsible for your business and communication with us.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 45–47)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, several aspects of the Deka Lash unit are considered intellectual property and proprietary to the company. This includes the studio design, layout, color patterns, signage, supplies, furniture, fixtures, and equipment. Deka Lash retains all rights and control over these elements. Upon termination or expiration of the Franchise Agreement, Deka Lash has the option to purchase these items from the franchisee at the adjusted book value, which is the undepreciated book value of the assets on the franchisee's most recently filed federal tax return prior to termination or expiration. If Deka Lash chooses not to purchase the items, the franchisee must sell them to a current Deka Lash franchisee or destroy them so they cannot be reused.
In addition to the physical aspects of the studio, Deka Lash also considers its Operations Manual, marketing materials (such as website text), and other printed materials as copyrighted and confidential. Although Deka Lash has not presently filed a registration of those copyrights, the company considers all of these items confidential and proprietary. Upon termination of the franchise agreement, the franchisee must return the Operations Manuals and any confidential information to Deka Lash.
Furthermore, Deka Lash considers customer data as confidential information, including any information collected about customers such as names, telephone numbers, addresses, and email addresses. Deka Lash retains all rights, title, and interest in and to the Customer Data, including all intellectual property rights. Franchisees are prohibited from disclosing or using Deka Lash's confidential information, including customer data, during and after the term of the Franchise Agreement.