How must Deka Lash franchisees advertise and promote their business?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Local Marketing Requirement within your Protected Territory. You must participate in promotional, advertising, charity or other programs we may specify at your own expense. Any mass media, internet, mailers, or other type advertising must be primarily focused in your territory unless we agree otherwise. You may spend any additional sums as you wish on local marketing. You must
ensure that all advertising, promotions or public statements are done with the highest ethical standards, are not misleading in any way, and adhere to federal, state and local rules and law. You must use only such advertising, press releases, public statements and promotional materials provided by, or approved in writing by us. We reserve the right to require you to discontinue any advertising, promotions, or promotional materials, as we deem necessary. Upon our request, you must submit proof of your expenditures on the Local Marketing Requirement.
- 7.4 Business Listing & Promotion. You agree to advertise, at your expense, in such online directories, advertising agencies, advertising fees and/or other promotional efforts as specified by us from time to time in our manuals. We have the right to place such listings, advertising, fees or promotions, on your behalf and collect the cost from you. If other franchisees are served by the same directories, agencies, promotions or listings, we have the right to require group participation, make direct arrangements, and to allocate an equitable part of the cost to each Franchisee. You must pay to us when billed the cost of listing or promotion of your Franchised Business on the internet or any other promotional sources as required by us. Any Business Listing & Promotion Fees will be applied against your Local Marketing Requirement.
- 7.5 Local Advertising Cooperative. We may designate any geographic area as a region for establishing a local advertising cooperative ("Local Advertising Cooperative"), though we typically designate areas based on Designated Market Areas as determined by the A.C. Nielsen Company. The members of the Local Advertising Cooperative for any area will consist of all Franchised Businesses, as well as outlets operated by us or our affiliates. We will determine in advance how each Local Advertising Cooperative will be organized and governed and when it must start operation. Each Local Advertising Cooperative will be organized for the sole purpose of administering advertising programs and developing, subject to our approval, promotional materials for use by the members in local advertising. If a Local Advertising Cooperative has been established for a geographic area where your Franchised Business is located when the Franchise Agreement is signed, or if any Local Advertising Cooperative is established during the term of the Franchise Agreement, you must become a member of the Local Advertising Cooperative and abide by the rules of the Local Advertising Cooperative.
If we establish a Local Advertising Cooperative for your area, you and franchisor-owned outlets in the Cooperative must contribute to the Local Advertising Cooperative the amounts required by its members, and all outlets must contribute on the same basis (which may be a uniform percent of revenue, a fixed amount, etc.).
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, franchisees must adhere to several guidelines regarding advertising and promotion. Deka Lash requires that all advertising, promotions, and public statements are ethical, not misleading, and compliant with all applicable laws. Franchisees must use only advertising, press releases, public statements, and promotional materials provided by or approved in writing by Deka Lash. Deka Lash retains the right to demand the discontinuation of any advertising or promotional materials they deem necessary. Franchisees must also provide proof of expenditures on local marketing upon request.
Franchisees are required to advertise in online directories, through advertising agencies, and in other promotional efforts as specified by Deka Lash. Deka Lash has the right to place listings, advertising, and promotions on behalf of the franchisee and collect the costs. If multiple franchisees benefit from the same advertising sources, Deka Lash can mandate group participation and allocate costs equitably among the franchisees. Franchisees must pay for the costs of internet or other promotional listings as required by Deka Lash, and these fees will count toward the local marketing requirement.
Deka Lash may establish local advertising cooperatives in designated geographic areas, typically based on A.C. Nielsen Company's Designated Market Areas. If a cooperative is established in the franchisee's area, the franchisee must become a member and adhere to its rules. Deka Lash also reserves the right to offer deals, discounted services, gift certificates, memberships, coupons, or vouchers on third-party websites or apps. Unless Deka Lash provides written consent, franchisees and their employees are prohibited from conducting or being involved in any digital marketing related to the Deka Lash brand, marks, or the studio. If digital marketing is permitted, franchisees must comply with Deka Lash's policies, which can be withdrawn at any time.
Furthermore, Deka Lash requires franchisees to assign all listings associated with the Deka Lash franchise, including telephone numbers, email addresses, domain names, social media accounts, and internet listings, to Deka Lash. This assignment is a condition of signing the Franchise Agreement, and all rights to these listings revert to Deka Lash upon expiration or termination of the agreement. Franchisees must update Deka Lash on any listings they adopt and pay all associated amounts. Upon termination, franchisees must transfer the listings to Deka Lash, install intercept messages, disconnect listings, and cooperate in the removal or relisting of any directory or advertising.