What is a Deka Lash franchisee obligated to do with performance data?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Personal and Performance Data. You agree that we may share performance data of Franchised Businesses between us, our employees, franchisees, franchisee's employees, affiliates, consultants, distributors, vendors, and agents. You agree to keep such performance data confidential. You consent to the disclosure by us of certain personal information concerning you and the Franchise and the Franchise Premises, namely your identity, including your name, address and telephone number, in our franchise disclosure documents, whether or not such disclosure is required by law, and in our other documents relating to the sale of franchises. Further, you consent to provide us with, and the additional disclosure by us of certain personal information concerning you, the Franchise and the Franchised Premises, including historical performance of the Franchise, sales, revenues, expenses, costs, results of operations, and similar financial information and operating information, and any information regarding the expiration or termination of your Franchise Agreement in our franchise disclosure documents (whether or not such disclosure is required by law), or to a prospective transferee of your Franchise or of the Franchise Premises or to any other prospective purchaser of us or any other franchise from us.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 45–47)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees have specific obligations regarding performance data. Deka Lash may share performance data of franchised businesses among themselves, their employees, franchisees, franchisee's employees, affiliates, consultants, distributors, vendors, and agents. Franchisees must keep this performance data confidential. This means a franchisee cannot disclose this information to unauthorized parties.
Furthermore, Deka Lash franchisees consent to the disclosure of certain personal information, including their name, address, and telephone number, in the franchise disclosure documents. They also consent to provide and allow Deka Lash to disclose historical performance data of their franchise, including sales, revenues, expenses, costs, results of operations, and similar financial and operating information. This information may be included in franchise disclosure documents or shared with prospective transferees or purchasers.
In practical terms, this means that as a Deka Lash franchisee, you must protect the confidentiality of performance data you receive about other franchises. You also agree to allow Deka Lash to share your own franchise's performance data with others. This is a fairly standard practice in franchising, as franchisors often use aggregated, anonymized data to help franchisees benchmark their performance and identify areas for improvement. However, franchisees should be aware that their financial and operating information will be shared within the Deka Lash network and potentially with prospective buyers.