Is Deka Lash obligated to offer deals or promotions on third-party websites?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
We have the right, but not the obligation to offer deals, discounted services, gift certificates, memberships, coupons, or vouchers on third party websites or apps such as Living Social.
Facebook or Groupon and their associated reach (be it digital or otherwise).
If we offer any deals, coupons, gift certificates, vouchers or such, we have the right to collect and retain any revenue from such deals, including payments to third parties and you will not be entitled to receive any payment or reimbursement from us, our affiliates, third parties, or the customers that purchase the services, deals, vouchers, gift certificates or coupons if the related services have not been provided by your Franchised Business.
Any net cash gain to the company however, (revenue minus associated expenses, such as the costs and fees charged by the third-party websites and apps), not directly paid to a studio, will be contributed to the Brand Development Fund and spent accordingly.
You must provide the services and products associated with the deals.
Funds contributed to the Brand Development Fund from these digital deals and promotions do not count towards your Brand Development Fees.
Unless we consent in writing, you and your employees must not conduct or be involved in any digital marketing related to our brand, marks or your studio.
If we do permit you to conduct any digital marketing, you must comply with our policies and we may withdraw approval at any time.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash has the right, but not the obligation, to offer deals or promotions on third-party websites or apps. These platforms include Living Social, Facebook, and Groupon. This means Deka Lash is not required to offer such promotions, but they reserve the right to do so.
If Deka Lash chooses to offer deals or promotions, they retain all revenue generated from these deals, including payments made to third-party websites. Franchisees are not entitled to any payment or reimbursement if the related services have not been provided by their franchised business. Any net cash gain to Deka Lash from these promotions, after deducting associated expenses like third-party fees, will be contributed to the Brand Development Fund.
Franchisees are obligated to provide the services and products associated with these deals. Furthermore, franchisees are generally prohibited from conducting digital marketing related to the Deka Lash brand without written consent from Deka Lash. If franchisees are permitted to engage in digital marketing, they must adhere to Deka Lash's policies, and Deka Lash can withdraw approval at any time. This ensures that Deka Lash maintains control over its brand and marketing strategies, even when promotions are run through third-party platforms.