What is the obligation of a Deka Lash franchisee regarding spending on online directories, advertising agencies, advertising fees and/or other promotional efforts?

re to federal, state and local rules and law. You must use only such advertising, press releases, public statements and promotional materials provided by, or approved in writing by us. We reserve the right to require you to discontinue any advertising, promotions, or promotional materials, as we deem necessary. Upon our request, you must submit proof of your expenditures on the Local Marketing Requirement.

• 7.4 Business Listing & Promotion. You agree to advertise, at your expense, in such online directories, advertising agencies, advertising fees and/or other promotional efforts as specified by us from time to time in our manuals. We have the right to place such listings, advertising, fees or promotions, on your behalf and collect the cost from you. If other franchisees are served by the same directories, agencies, promotions or listings, we have the right to require group participation, make direct arrangements, and to allocate an equitable part of the cost to each Franchisee. You must pay to us when billed the cost of listing or promotion of your Franchised Business on the internet or any other promotional sources as required by us. Any Business Listing & Promotion Fees will be applied against your Local Marketing Requirement.
• 7.5 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.

Advertising Cooperatives must operate from written governing documents and they are available for your review upon reasonable written request.

We reserve the right to form, change, dissolve, or merge any Local Advertising Cooperative.

• 7.6 Private Websites. You are not allowed to have an independent website or obtain or use any domain name (Internet address) for your Franchised Business.
• 7.7 Digital Marketing.

• (a) Digital Marketing.

Source: Item 23 — RECEIPT (FDD pages 63–234)