Can the Deka Lash Brand Development Fund be used for graphic design?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
We may use the Brand Development Fund to pay for any costs incurred through third parties or our employment of personnel primarily dedicated to consumer marketing and promotion activities associated with advertising, promotional events, graphic design, photography, video production, branding, public relations, marketing, promotional materials, media, production, and any other activity we believe will benefit Deka Lash, including the creation, maintenance, optimization, and advertising of the company website or other websites, pay per click advertising, and administration of such, creating, conducting, and managing social media, creating, maintenance and promotion of appointment setting software, contests, direct mailers, promotions, and providing promotional materials to our franchisees. We may also use these fees for the support of creation and execution of all materials. We have the right to develop all media and marketing programs (internally or through outside vendors), and have the final decision on all promotions, creative concepts, and media. We may add information about franchise opportunities to advertising and activities supported by the Brand Development Fee. We do not guarantee that you will benefit from the Brand Development Fund in proportion to your contributions.
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, the Brand Development Fund can be used for graphic design. Deka Lash franchisees are required to contribute to this fund, which the franchisor then uses for various marketing and promotional activities.
The document specifies that the Brand Development Fund may be used to cover costs associated with advertising, promotional events, graphic design, photography, video production, branding, public relations, marketing, and promotional materials. This indicates that Deka Lash has the discretion to allocate funds towards graphic design services, whether through third-party vendors or internal resources, to enhance the brand's image and marketing efforts.
For a prospective franchisee, this means that a portion of their mandatory Brand Development Fee contributions could be directed towards graphic design initiatives managed by Deka Lash. However, the FDD also states that Deka Lash does not guarantee that franchisees will directly benefit from the Brand Development Fund in proportion to their contributions. The franchisor has the final say on all promotions, creative concepts, and media, ensuring brand consistency across all franchise locations.