What is a Local Advertising Cooperative for Deka Lash?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
If we establish a Local Advertising Cooperative for your area, you and franchisor-owned outlets in the Cooperative must contribute to the Local Advertising Cooperative the amounts required by its members, and all outlets must contribute on the same basis (which may be a uniform percent of revenue, a fixed amount, etc.). The amount of contribution will be determined by the members of the Local Advertising Cooperative, subject to our approval. Each member will have one vote for each Franchised Business operated by the member within the geographic area subject to the Local Advertising Cooperative.
Any contributions you make towards the Cooperative will be credited against your Local Marketing Requirement.
We reserve the right to form, change, dissolve or merge any Local Advertising Cooperative. (Franchise Agreement, Section 7.5).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–40)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a Local Advertising Cooperative is a regional group of franchises and franchisor-owned outlets within a designated geographic area, typically based on Designated Market Areas determined by the A.C. Nielsen Company. These cooperatives are established to administer advertising programs and develop promotional materials for local advertising, subject to Deka Lash's approval.
If a Local Advertising Cooperative exists in the franchisee's area, membership is mandatory, and franchisees must adhere to its rules. Contributions to the cooperative are determined by its members, subject to Deka Lash's approval, and all outlets within the cooperative must contribute on the same basis, whether it's a percentage of revenue or a fixed amount. Each member gets one vote per franchised business they operate within the cooperative's area.
Contributions to the Local Advertising Cooperative are credited against the franchisee's Local Marketing Requirement. Deka Lash retains the right to form, change, dissolve, or merge any Local Advertising Cooperative, giving them significant control over local advertising efforts. This structure ensures a coordinated approach to local marketing while allowing Deka Lash to maintain oversight and final approval of advertising and promotional activities.