Is a Deka Lash franchisee entitled to reimbursement for expenses or lost revenue associated with participating in Deka Lash promotional programs?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
If we offer any deals, coupons, gift certificates, vouchers or such, we have the right to collect and retain any revenue from such deals, including payments to third parties and you will not be entitled to receive any payment or reimbursement from us, our affiliates, third parties, or the customers that purchase the services, deals, vouchers, gift certificates or coupons if the related services have not been provided by your Franchised Business.
Any net cash gain to the company however, (revenue minus associated expenses, such as the costs and fees charged by the third-party websites and apps), not directly paid to a studio, will be contributed to the Brand Development Fund and spent accordingly.
You must provide the services and products associated with the deals.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, franchisees are generally not entitled to reimbursement or payment related to promotional programs. Deka Lash retains the right to offer deals, discounted services, gift certificates, memberships, coupons, or vouchers on third-party websites or apps. Deka Lash also has the right to collect and retain any revenue from such deals, including payments to third parties.
Specifically, a Deka Lash franchisee will not receive any payment or reimbursement from Deka Lash, its affiliates, third parties, or customers if the related services have not been provided by the franchisee's business. This means that if a customer purchases a deal or voucher but does not redeem it at the franchisee's location, the franchisee will not be compensated.
Any net cash gain from these promotions (revenue minus associated expenses) that is not directly paid to a studio will be contributed to the Brand Development Fund. Franchisees are obligated to provide the services and products associated with these deals. This policy highlights that Deka Lash maintains control over promotional activities and revenue, while franchisees are responsible for fulfilling the services tied to those promotions without direct reimbursement for participation or potential lost revenue.