Are Deka Lash franchisees and franchisor-owned outlets required to contribute the same amount to the Local Advertising Cooperative?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
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.). The amount of contribution will be determined by the members of the Local Advertising Cooperative, subject to our approval. Each member will have one vote for each Franchised Business operated by the member within the geographic area subject to the Local Advertising Cooperative.
Any contributions you make towards the Cooperative will be credited against your Local Marketing Requirement.
We reserve the right to form, change, dissolve or merge any Local Advertising Cooperative. (Franchise Agreement, Section 7.5).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–40)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, if a Local Advertising Cooperative is established in a Deka Lash franchisee's area, both the franchisee and any franchisor-owned outlets within that cooperative must contribute to it. The contribution basis must be the same for all members. This means that the contribution can be a uniform percentage of revenue or a fixed amount.
The amount to be contributed to the Local Advertising Cooperative is determined by the members of the cooperative, but it is subject to Deka Lash's approval. Each member of the cooperative gets one vote for each Deka Lash franchised business that they operate within the geographic area that the cooperative covers.
Any contributions that a Deka Lash franchisee makes to the Local Advertising Cooperative will be credited against their Local Marketing Requirement. Deka Lash retains the right to form, change, dissolve, or merge any Local Advertising Cooperative.