Can Deka Lash dissolve any Local Advertising Cooperative?

According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash retains the authority to dissolve any Local Advertising Cooperative. This is explicitly stated in the Franchise Agreement, Section 7.5. Deka Lash also reserves the right to form, change, or merge these cooperatives.

For a prospective franchisee, this means that while they may be required to participate in a Local Advertising Cooperative and contribute to it, Deka Lash can dissolve the cooperative at any time. The franchisee must adhere to the rules of the Local Advertising Cooperative if one is established in their area, and they must contribute the required amounts, which are determined by the members and subject to Deka Lash's approval. Contributions to the Cooperative will be credited against the franchisee's Local Marketing Requirement.

This clause gives Deka Lash significant control over local advertising efforts. While franchisees have a voice in the cooperative, Deka Lash's power to dissolve or change the cooperative structure could impact local marketing strategies and the franchisee's ability to market their studio effectively. Franchisees should consider this when evaluating the level of control they will have over local advertising and promotion.