factual

Who bears the expense of participating in promotional, advertising, or charity programs specified by Deka Lash?

Deka_Lash Franchise · 2024 FDD

Answer from 2024 FDD Document

re to federal, state and local rules and law. You must use only such advertising, press releases, public statements and promotional materials provided by, or approved in writing by us. We reserve the right to require you to discontinue any advertising, promotions, or promotional materials, as we deem necessary. Upon our request, you must submit proof of your expenditures on the Local Marketing Requirement.

  • 7.4 Business Listing & Promotion. You agree to advertise, at your expense, in such online directories, advertising agencies, advertising fees and/or other promotional efforts as specified by us from time to time in our manuals. We have the right to place such listings, advertising, fees or promotions, on your behalf and collect the cost from you. If other franchisees are served by the same directories, agencies, promotions or listings, we have the right to require group participation, make direct arrangements, and to allocate an equitable part of the cost to each Franchisee. You must pay to us when billed the cost of listing or promotion of your Franchised Business on the internet or any other promotional sources as required by us. Any Business Listing & Promotion Fees will be applied against your Local Marketing Requirement.
  • 7.5 Local Advertising Cooperative. We may designate any geographic area as a region for establishing a local advertising cooperative ("Local Advertising Cooperative"), though we typically designate areas based on Designated Market Areas as determined by the A.C. Nielsen Company. The members of the Local Advertising Cooperative for any area will consist of all Franchised Businesses, as well as outlets operated by us or our affiliates. We will determine in advance how each Local Advertising Cooperative will be organized and governed and when it must start operation. Each Local Advertising Cooperative will be organized for the sole purpose of administering advertising programs and developing, subject to our approval, promotional materials for use by the members in local advertising. If a Local Advertising Cooperative has been established for a geographic area where your Franchised Business is located when the Franchise Agreement is signed, or if any Local Advertising Cooperative is established during the term of the Franchise Agreement, you must become a member of the Local Advertising Cooperative and abide by the rules of the Local Advertising Cooperative.

If we establish a Local Advertising Cooperative for your area, you and franchisor-owned outlets in the Cooperative must contribute to the Local Advertising Cooperative the amounts required by its members, and all outlets must contribute on the same basis (which may be a uniform percent of revenue, a fixed amount, etc.).

Source: Item 23 — RECEIPT (FDD pages 63–234)

What This Means (2024 FDD)

According to Deka Lash's 2024 Franchise Disclosure Document, franchisees are responsible for advertising and promotional expenses. Deka Lash may specify online directories, advertising agencies, and other promotional efforts in which franchisees must participate, and the franchisee bears the cost. Deka Lash has the right to place these listings or promotions on behalf of the franchisee and then collect the costs from them. If multiple franchisees are involved in the same advertising or promotional efforts, Deka Lash can require group participation and allocate costs equitably among the franchisees.

Franchisees are also required to adhere to local marketing requirements and may be required to participate in a Local Advertising Cooperative if one is established in their area. Franchisees must become members and abide by the cooperative's rules, which are designed to administer advertising programs and develop promotional materials for local advertising, subject to Deka Lash's approval.

Furthermore, franchisees must ensure that all advertising and promotional materials meet ethical standards and comply with all applicable laws. They are generally required to use materials provided or approved in writing by Deka Lash, and Deka Lash reserves the right to require franchisees to discontinue any advertising or promotional activities it deems necessary. Franchisees may also be required to provide proof of their local marketing expenditures upon request.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.