What is the geographic limit for a Deka Lash franchisee's advertising efforts?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
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, a franchisee's advertising efforts may be influenced by several factors, including local advertising cooperatives. Deka Lash may designate a geographic area as a region for establishing a local advertising cooperative, typically based on Designated Market Areas as determined by the A.C. Nielsen Company.
If a Local Advertising Cooperative has been established for the geographic area where the Deka Lash Franchised Business is located when the Franchise Agreement is signed, or if one is established during the term of the Franchise Agreement, the franchisee must become a member and abide by its rules. These cooperatives are organized to administer advertising programs and develop promotional materials for local advertising, subject to Deka Lash's approval.
Furthermore, Deka Lash retains control over advertising materials. Franchisees must ensure that all advertising, promotions, or public statements adhere to ethical standards and comply with federal, state, and local laws. Franchisees are required to use only advertising, press releases, public statements, and promotional materials provided by or approved in writing by Deka Lash. Deka Lash reserves the right to require franchisees to discontinue any advertising, promotions, or promotional materials as deemed necessary. Franchisees may also be required to submit proof of expenditures on local marketing upon request.