If a Deka Lash franchisee desires to use alternative suppliers, what is the required action?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
air own an interest in us and in our affiliate, DL Products, LLC.
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. If we revoke approval for a supplier, we will provide written notice to you.
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, a franchisee who wishes to use alternative suppliers must obtain written approval from Deka Lash. The franchisee needs to submit a written request for approval, which includes details about the proposed suppliers, products, or services. Deka Lash may charge the franchisee for any expenses incurred during the testing and approval process of these alternative suppliers, products, or services.
Deka Lash will evaluate the quality of the items and the supplier's capacity to provide a sufficient quantity in a timely manner, along with good customer service, before considering adding the supplier to their approved list. The franchisee will be notified within 60 days whether the alternative supplier has been approved or disapproved. If Deka Lash revokes approval for a supplier, they will provide written notice to the franchisee. Franchisees are prohibited from independently contracting with vendors unless they have written approval from Deka Lash.
This process ensures that Deka Lash maintains control over the quality and consistency of products and services used within its franchise system. While franchisees have the option to seek alternative suppliers, they must adhere to Deka Lash's approval process. This protects the brand's reputation and standards. The fact that Deka Lash does not maintain written criteria for approving suppliers means that the approval process may be somewhat subjective, and it is important for prospective franchisees to discuss this process with Deka Lash to understand what factors will be most important in evaluating a proposed alternative supplier.
For a prospective franchisee, this means that while there is some flexibility in sourcing, Deka Lash retains significant control over the supply chain. Franchisees should factor in potential costs and time delays associated with getting alternative suppliers approved. It is also important to understand that Deka Lash can change required computer hardware or software at any time, and franchisees are required to convert to the new system.