Will Deka Lash franchisees be reimbursed for discounts offered through the membership program?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
If we offer any deals, coupons, gift certificates, vouchers or such, we have the right to collect and retain any revenue from such deals, including payments to third parties and you will not be entitled to receive any payment or reimbursement from us, our affiliates, third parties, or the customers that purchase the services, deals, vouchers, gift certificates or coupons if the related services have not been provided by your Franchised Business.
Any net cash gain to the company however, (revenue minus associated expenses, such as the costs and fees charged by the third-party websites and apps), not directly paid to a studio, will be contributed to the Brand Development Fund and spent accordingly.
You must provide the services and products associated with the deals.
Funds contributed to the Brand Development Fund from these digital deals and promotions do not count towards your Brand Development Fees.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, franchisees may not be reimbursed for discounts offered through deals, coupons, gift certificates, or vouchers on third-party websites or apps. Deka Lash retains the right to offer these promotions and collect revenue from them.
Specifically, if Deka Lash offers deals or discounts, they have the right to collect and retain any revenue, including payments to third parties. Franchisees are not entitled to receive any payment or reimbursement from Deka Lash, its affiliates, third parties, or customers if the related services have not been provided by the franchisee's business. The franchisee is still obligated to provide the services and products associated with these deals.
Any net cash gain from these deals (revenue minus expenses) not directly paid to a studio will be contributed to the Brand Development Fund. Funds contributed to the Brand Development Fund from these digital deals and promotions do not count towards the franchisee's Brand Development Fees. This arrangement means that while Deka Lash may run promotions that benefit the brand as a whole, individual franchisees may not directly profit from them and will not be reimbursed for providing the discounted services.
This policy is important for prospective franchisees to understand, as it clarifies that Deka Lash controls promotional activities and revenue generated through third-party platforms. Franchisees should factor this into their financial projections and understand that participation in these promotions may not result in direct financial benefit to their studio.