Who are the members of a Deka Lash Local Advertising Cooperative?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
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.
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, the members of a Local Advertising Cooperative consist of all Deka Lash Franchised Businesses within a designated geographic area, along with any outlets operated by Deka Lash or its affiliates. Deka Lash may designate any geographic area as a region for establishing a Local Advertising Cooperative, typically basing these areas on Designated Market Areas as determined by the A.C. Nielsen Company.
If a Local Advertising Cooperative is established for the area where a franchisee's Deka Lash business is located, either when the Franchise Agreement is signed or at any point during the agreement's term, the franchisee must become a member and adhere to the cooperative's rules. Franchisees and franchisor-owned outlets within the cooperative are required to contribute to the Local Advertising Cooperative.
The amount of contribution is determined by the members of the Local Advertising Cooperative, subject to Deka Lash's approval, and all outlets must contribute on the same basis, whether it's a uniform percentage of revenue or a fixed amount. Each member has one vote for each Franchised Business they operate within the geographic area covered by the Local Advertising Cooperative. Any contributions made towards the Cooperative will be credited against the franchisee's Local Marketing Requirement.