Can Deka Lash franchisees purchase equipment and furniture from any supplier?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Equipment and Furniture. You must purchase equipment and furniture from a supplier that we designate or subject to our specifications.
Alternative Suppliers and Vendors:
We do not maintain written criteria for approving suppliers and thus these criteria are not available to you or your proposed supplier. We do permit you to contract with alternative suppliers and vendors, including marketing and technology vendors, if approved by us in writing and they meet our criteria. If you desire to purchase products or services other than those provided by our approved suppliers or vendors, you may submit to us a written request for approval of the proposed suppliers, products or services. We may charge you for the reasonable expenses and costs we incur to test and approve these suppliers, products, or services. We will examine the quality of the items and the supplier's ability to supply a sufficient quantity in a timely way with good customer service to determine whether to consider adding the supplier to our list of approved
vendors. We will notify you within 60 days if we approve or disapprove of an alternative supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–30)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees do not have complete freedom in selecting suppliers for equipment and furniture. The FDD states that franchisees must purchase equipment and furniture from a supplier that Deka Lash designates or that meets their specifications. This restriction ensures that all Deka Lash locations maintain a consistent brand image and meet the franchisor's quality standards.
This requirement has several implications for prospective franchisees. First, it limits their ability to negotiate prices with different suppliers, potentially leading to higher costs. Second, it means franchisees must adhere to Deka Lash's approved list of vendors, which may or may not be the franchisee's preferred choice. However, this also ensures that the equipment and furniture meet Deka Lash's standards and are suitable for the business model.
While franchisees are restricted in their choice of equipment and furniture suppliers, the FDD also indicates some flexibility. Franchisees may be able to contract with alternative suppliers and vendors, including marketing and technology vendors, if approved by Deka Lash in writing and if they meet the company's criteria. To pursue this option, franchisees must submit a written request for approval, and Deka Lash may charge for the expenses incurred to test and approve these suppliers, products, or services. Deka Lash will then assess the quality and the supplier's ability to provide sufficient quantity and good customer service, notifying the franchisee of their decision within 60 days.