How must Deka Lash franchisees spend their local marketing funds?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- e) Your advertising must comply with federal, state, and local laws.
- f) If our written approval is not received on any advertising, advertising copy, broadcasting arrangement, public relations program, press release or other promotional material, including proposed signage submitted to us within 14 days from the date of request of approval, the advertising, promotions or material is deemed disapproved.
- 7.3 Minimum Local Marketing. You must spend a minimum of $2,000 per month on local marketing and promotion in accordance with our standards and specifications (the "Local Marketing Requirement"). Your local marketing is in addition to your Brand Development Fee paid to us. You must spend the Local Marketing Requirement funds as we prescribe in the Operations Manual or otherwise in writing, which may include, without limitation, requirements for placing a certain number and/or type(s) of media advertisements or engaging certain public figures to assist you in promoting the Franchised Business. Unless we otherwise approve in writing, you must spend the 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.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees are required to spend a minimum of $2,000 per month on local marketing and promotion. This local marketing expenditure is separate from the Brand Development Fee that franchisees pay to Deka Lash. The FDD states that Deka Lash prescribes how these local marketing funds must be spent, potentially including requirements for specific types and numbers of media advertisements or engaging public figures to promote the Franchised Business. Unless Deka Lash approves otherwise in writing, franchisees must spend this marketing budget within their Protected Territory. Franchisees are also expected to participate in promotional, advertising, charity, or other programs that Deka Lash specifies, at their own expense.
The Deka Lash franchise agreement stipulates that any advertising or promotional materials created by the franchisee, including website content or social media posts that use Deka Lash's trademarks, are considered "advertising" and require written approval from Deka Lash. If approval is not received within 14 days of the request, the advertising or promotional material is considered disapproved. This ensures that all marketing efforts align with Deka Lash's brand standards and comply with applicable laws.
In summary, Deka Lash franchisees have a mandatory local marketing spend, but their discretion over how those funds are used is limited by the franchisor's control. Franchisees need to adhere to Deka Lash's guidelines and obtain approval for their marketing initiatives to ensure compliance with the franchise agreement.