What are the ongoing obligations of a Deka Lash franchisee (Item 9) that are directly related to the restrictions on advertising and marketing outlined in Item 8?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Franchisee's Obligations | Section In Franchise Agreement | Section in Area Development Agreement | Item in Disclosure document |
|---|---|---|---|
| o. Advertising | 7 | Not Applicable | 8, 11 |
Advertising and Marketing. You must use advertising material provided by us, a vendor that we designate, or we must approve the advertising in writing, prior to its use.
Brand Development Fees. We require you to contribute a monthly Brand Development Fee equal to the greater of 3% of Gross Studio Sales or, after one year of being open, $500 per month. We may use the Brand Development Fund to pay for any costs incurred through third parties or our employment of personnel primarily dedicated to consumer marketing and promotion activities associated with advertising, promotional events, graphic design, photography, video production, branding, public relations, marketing, promotional materials, media, production, and any other activity we believe will benefit Deka Lash, including the creation, maintenance, optimization, and advertising of the company website or other websites, pay per click advertising, and administration of such, creating, conducting, and managing social media, creating, maintenance and promotion of appointment setting software, contests, direct mailers, promotions, and providing promotional materials to our franchisees. We may also use these fees for the support of creation and execution of all materials. We have the right to develop all media and marketing programs (internally or through outside vendors), and have the final decision on all promotions, creative concepts, and media.
As a condition to signing the Franchise Agreement(s), we have required that you assign all of your Listings relating to the Deka Lash Franchise(s) to us upon the expiration or termination of any of the Franchise Agreements.
Franchisee agrees to update us as soon as possible of any listings adopted by Franchisee. Franchisee agrees to pay all amounts pertaining to the use of the Listings incurred by it when due. Upon expiration or termination of the Agreement for any reason, Franchisee's right of use of the Listings shall terminate. In the event of termination or expiration of the Agreement, Franchisee agrees to pay all amounts owed in connection with the Listings, including all sums owed under existing contracts for telephone directory advertising and to immediately at Franchisor's request, (i) take any other action as may be necessary to transfer the Listings and numbers to Franchisor or Franchisor's designated agent, (ii) install and maintain, at Franchisee's sole expense, an intercept message, in a form and manner acceptable to Franchisor on any or all of the Listings; (iii) disconnect the Listings; and/or (iv) cooperate with Franchisor or its designated agent in the removal or relisting of any telephone directory or directory assistance listing, Internet directory, website or advertising, whether published or online.
Franchisee agrees that Franchisor may require that all telephone numbers and telephone and internet equipment and service must be owned or provided by Franchisor or a supplier approved by Franchisor and that Franchisor has the right to require Franchisee to "port" or transfer to Franchisor or an approved call routing and tracking vendor all phone numbers associated with the Franchised Business or published in any print or online directory, advertisement, marketing or promotion associated with the Marks.
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, franchisees have specific ongoing obligations related to advertising. Item 9 lists 'Advertising' as one of the franchisee's obligations, referencing Section 7 of the Franchise Agreement and Items 8 and 11 of the FDD. This indicates that franchisees must adhere to the advertising guidelines and restrictions set forth by Deka Lash.
Item 8 specifies that franchisees must use advertising material provided by Deka Lash or an approved vendor, or obtain written approval from Deka Lash before using their own advertising materials. This ensures brand consistency and quality control across all franchise locations.
Item 11 further clarifies that Deka Lash requires franchisees to contribute to a Brand Development Fund, which is used for various marketing and promotional activities. The monthly contribution is the greater of 3% of Gross Studio Sales or, after one year of being open, $500 per month. Deka Lash has control over all media and marketing programs and has the final say on all promotions, creative concepts, and media. Franchisees must comply with these advertising and marketing requirements as part of their ongoing obligations.
Additionally, Deka Lash may require franchisees to assign all of their listings relating to the Deka Lash franchise to them upon the expiration or termination of any of the Franchise Agreements. Franchisees must update Deka Lash as soon as possible of any listings adopted by the Franchisee and pay all amounts pertaining to the use of the Listings incurred by it when due. Deka Lash may also require that all telephone numbers and telephone and internet equipment and service must be owned or provided by Deka Lash or a supplier approved by Deka Lash and that Deka Lash has the right to require Franchisee to "port" or transfer to Franchisor or an approved call routing and tracking vendor all phone numbers associated with the Franchised Business or published in any print or online directory, advertisement, marketing or promotion associated with the Marks.