Is Deka Lash obligated to maintain the Brand Development Fund in a separate bank account?

Based on the 2024 Deka Lash Franchise Disclosure Document, it is not specified whether Deka Lash is obligated to maintain the Brand Development Fund in a separate bank account. The document does mention that franchisees are required to execute an Automatic Bank Draft Authorization for fees, including the Brand Development Fee, which are paid via ACH electronic funds transfer. However, this does not provide details on how Deka Lash manages these funds internally.

Typically, franchisors that collect a brand development or advertising fund will disclose whether these funds are held separately from the franchisor's general operating accounts. This separation helps ensure transparency and accountability in how the funds are used for the benefit of the franchise system. Without a specific statement in the FDD, prospective franchisees cannot be certain how Deka Lash manages the Brand Development Fund.

Therefore, a potential Deka Lash franchisee should directly ask the franchisor whether the Brand Development Fund is maintained in a separate account, and request detailed information about the fund's governance, including how the funds are used, who makes decisions about expenditures, and whether franchisees have any input or oversight.