Where must Deka Lash franchisees primarily focus their advertising efforts?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, franchisees must advertise at their own expense in online directories, with advertising agencies, and through other promotional efforts as specified by Deka Lash in its manuals. Deka Lash has the right to place these listings, advertising, fees, or promotions on behalf of the franchisee and then collect the costs from them. If multiple franchisees are served by the same directories, agencies, promotions, or listings, Deka Lash can require group participation, make direct arrangements, and allocate an equitable portion of the cost to each franchisee. Franchisees must pay Deka Lash when billed for the cost of listing or promoting their franchised business on the internet or any other promotional sources required by Deka Lash. Any Business Listing & Promotion Fees will be applied against the Local Marketing Requirement.
Furthermore, Deka Lash may designate a geographic area as a region for establishing a local advertising cooperative. Membership in this cooperative is mandatory for franchisees located within the designated area. The purpose of the Local Advertising Cooperative is to administer advertising programs and develop promotional materials for local advertising, subject to Deka Lash's approval. Deka Lash determines how each Local Advertising Cooperative will be organized, governed, and when it must start operation.
This means that Deka Lash franchisees are required to participate in both online advertising and local advertising cooperatives if established in their area. The franchisor maintains significant control over these advertising efforts, including the right to place advertising on the franchisee's behalf and collect the costs. Franchisees should be prepared to allocate a portion of their marketing budget to these required advertising activities and to adhere to the guidelines and requirements set forth by Deka Lash.