What is a Deka Lash franchisee prohibited from doing under the non-disparagement clause?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
You shall not, at any time during the Term and thereafter, make statements or representations, or otherwise communicate, directly or indirectly, in writing, orally, or otherwise, or take any action which may, directly or indirectly, disparage us, our franchisees, or any of its subsidiaries or affiliates or their respective officers, directors, employees, advisors, businesses or reputations.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, as a franchisee, you are prohibited at any time during the term of the agreement, and thereafter, from making statements or representations, or otherwise communicating, directly or indirectly, in writing, orally, or otherwise, or taking any action which may, directly or indirectly, disparage Deka Lash, its franchisees, or any of its subsidiaries or affiliates or their respective officers, directors, employees, advisors, businesses, or reputations.
This clause means that a Deka Lash franchisee must not make any negative or critical comments about the franchisor, other franchisees, or related parties. This restriction extends both during the term of the franchise agreement and even after it expires or terminates. The non-disparagement clause covers all forms of communication, including written, oral, and indirect actions.
For a prospective franchisee, this clause is important because it limits their ability to publicly voice concerns or criticisms about the franchise system. While non-disparagement clauses are common in franchise agreements, franchisees should carefully consider the implications and ensure they are comfortable with this restriction before investing in a Deka Lash franchise. It is important to note that this clause could potentially impact a franchisee's ability to share their experiences, whether positive or negative, with other potential investors or the public.