How many votes does each member have in a Deka Lash Local Advertising Cooperative?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Each member will have one vote for each Franchised Business operated by the member within the geographic area subject to the Local Advertising Cooperative.
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, each member of a Local Advertising Cooperative has one vote for each franchised business they operate within the geographic area covered by the cooperative. This means that a franchisee with multiple Deka Lash locations in the cooperative's area would have more votes than a franchisee with only one location. Similarly, Deka Lash itself, for any company-owned outlets within the area, also gets one vote per outlet.
This voting structure ensures that larger operators and Deka Lash corporate have a proportionally larger say in the cooperative's decisions, such as determining the advertising programs and promotional materials used in the local advertising. However, all outlets, whether franchised or company-owned, contribute to the cooperative on the same basis, which could be a uniform percentage of revenue or a fixed amount. The amount of contribution is determined by the members, but is subject to Deka Lash's approval.
As a prospective franchisee, it's important to understand how the Local Advertising Cooperative operates in your area, including the number of members, the contribution requirements, and the types of advertising programs being implemented. Since Deka Lash reserves the right to form, change, dissolve, or merge any Local Advertising Cooperative, the structure and rules could change during the term of your Franchise Agreement. Understanding the dynamics of the cooperative and its potential impact on your local marketing efforts is a key aspect of evaluating the Deka Lash franchise opportunity.