Who determines the amount of contribution to a Deka Lash Local Advertising Cooperative?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
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.). The amount of contribution will be determined by the members of the Local Advertising Cooperative, subject to our approval. Each member will have one vote for each Franchised Business operated by the member within the geographic area subject to the Local Advertising Cooperative.
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 members of the Local Advertising Cooperative determine the contribution amounts, but this is subject to Deka Lash's approval. The cooperative members include all franchised businesses and outlets operated by Deka Lash or its affiliates within the designated geographic area. Each member gets one vote for each Deka Lash business they operate in the area.
If a Local Advertising Cooperative is established for a Deka Lash franchise's area, the franchisee must join and follow its rules. All outlets in the cooperative, including both franchised and company-owned, must contribute on the same basis, which could be a percentage of revenue or a fixed amount.
Any contributions a Deka Lash franchisee makes to the Local Advertising Cooperative will be credited against their Local Marketing Requirement. Deka Lash retains the right to form, change, dissolve, or merge any Local Advertising Cooperative.