Can a Deka Lash franchisee use a general manager to supervise the Franchised Business?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
You must actively participate in the daily affairs of the business.
You are expected to participate actively in franchisee meetings, seminars, conferences, and supplemental training we sponsor.
You represent that you are in good health and able to devote your efforts in the day-to-day operations of your franchise or that you have the business management skills necessary to successfully hire and supervise a manager to run the day-to-day operations of your Franchise.
- (b) Supervision. You agree that the services of the Franchised Business will be provided under your direct supervision and control or under the direct supervision and control of a full-time general manager who has successfully completed our initial training.
Your studio manager (if applicable) and all employees that have access to client accounts or as required by local law, must be able to pass a criminal background check based on our minimum requirements as specified in the Operations Manual.
You must ensure that your business managers comply fully with all applicable terms of this Agreement including maintaining all confidential information, not competing with us and safeguarding all relevant documents, manuals, etc.
- (c) Principal Owner. You must designate one (1) owner with at least 10% ownership as the "Principal Owner." The Principal Owner is the primary owner responsible for your business and communication with us.
The Principal Owner must have authority over all transactions and dealings related to your studio and must have power to create binding agreements with us.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a franchisee can use a general manager to supervise the Franchised Business, provided the general manager has successfully completed Deka Lash's initial training program. The franchisee must actively participate in the daily affairs of the business, or demonstrate the business management skills necessary to successfully hire and supervise a manager to run the day-to-day operations of the Franchise.
The FDD states that the services of the Franchised Business can be provided under the direct supervision and control of the franchisee or a full-time general manager who has completed the initial training. Additionally, the studio manager (if applicable) and all employees with access to client accounts or as required by local law, must pass a criminal background check based on Deka Lash's minimum requirements as specified in the Operations Manual.
The franchisee is responsible for ensuring that their business managers comply with all applicable terms of the Franchise Agreement, including maintaining confidential information, not competing with Deka Lash, and safeguarding all relevant documents and manuals. The franchisee must also designate one owner with at least 10% ownership as the "Principal Owner," who is responsible for the business and communication with Deka Lash and has authority over all transactions and dealings related to the studio.