Does Deka Lash consider social media that uses the Marks as advertising?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
curred 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. We will not use the Brand Development Fund to defray the cost of our general operating expenses except for reasonable allocation of overhead, including pro-rata amount of salaries and facilities, used to develop, research and administer the promotions, products and activities covered by the Brand Development Fees. By making a written request to us, you may obtain an annual unaudited financial statement of the Brand Development Fund, at the expense of the Brand Development Fund, available 120 days after our fiscal year end. If we do not spend all Brand Development Fees received in a given year, we roll them over and apply them to the Brand Development Fund in the following year. We may use Brand Development Fees to pay for an independent audit of the Brand Development Fund, if we choose to have it audited.
In our last fiscal year ending December 31, 2023, we collected $508,197 in Brand Development Fees and spent a total of $797,535 as follows:
| Production and administration | 63% |
|---|---|
| Online/digital advertising and promotion | 18% |
| Marketing technology systems | 14% |
| Other expenses | 5% |
| Total | 100% |
Digital Marketing. We may create, operate and promote websites, social media accounts (including but not limited to Facebook, Twitter, and Instagram), applications, digital advertising (including pay-per-click and display ads) or other means of digital marketing to promote the brand, studios, Marks and franchise opportunities. We may require that you use specified advertising vendors. We have the sole right to control all aspects of any digital marketing including all digital marketing related to your studio.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, social media that uses the Deka Lash marks is considered advertising. Deka Lash has the right to develop all media and marketing programs and has final decision on all promotions, creative concepts, and media.
The document states that franchisees must not conduct or be involved in any digital marketing related to the Deka Lash brand, marks, or their studio without written consent from Deka Lash. If Deka Lash permits a franchisee to conduct digital marketing, the franchisee must comply with Deka Lash's policies, and Deka Lash may withdraw approval at any time.
Additionally, upon the expiration or termination of the Franchise Agreement, the franchisee must assign all listings associated with the Deka Lash franchise to the franchisor. These listings include telephone numbers, email addresses, domain names, social media accounts, Internet listings, websites, and comparable electronic identities used in connection with the Marks. This ensures that Deka Lash maintains control over its brand identity and online presence.