What is the definition of 'Non-Employed Participants' in the context of 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 the 2024 Deka Lash Franchise Disclosure Document, Non-Employed Participants are individuals who operate within the Deka Lash business but are not formally recognized as owners or employees. This category includes family members, close friends, significant others, spouses, and children.
These Non-Employed Participants must execute a confidentiality, non-disclosure, and non-competition agreement to protect Deka Lash's interests. This requirement ensures that even those who are not formally employed by the franchise are legally bound to maintain the confidentiality of business operations and refrain from competitive activities.
Furthermore, Deka Lash retains the right to terminate or limit the access and privileges of Non-Employed Participants if they fail to comply with system policies. This provision allows Deka Lash to maintain control over who is involved in the business and to ensure that everyone associated with the franchise adheres to the established standards and procedures.