Are those who provide references to prospective Deka Lash franchisees acting as agents of the franchisor?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
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Referral Program. Currently, we pay a referral fee in the amount of $5,000 to franchisees, vendors and others who provide us with prospective franchisee leads that enter into a Franchise. This referral program is administered at our sole discretion and may be changed or discontinued by us at any time. The referral fee is further subject to change at any time. Those who are eligible to participate in this referral program and who may provide references to prospective franchisees are not acting as our agent and do not speak for us, despite the receipt of a referral fee. We do not control what these individuals may say, and we cannot guarantee the accuracy of any statement made by them, to you or any other prospective franc
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–11)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, individuals who provide references to prospective franchisees are not considered agents of Deka Lash, even if they receive a referral fee. Deka Lash may pay a referral fee of $5,000 to franchisees, vendors, and others who provide leads that result in a new franchise agreement.
This means that prospective franchisees should not consider these references as official representatives of Deka Lash. While these individuals may share their experiences or opinions, they are not authorized to speak on behalf of the company. Deka Lash explicitly states that it does not control what these individuals say and cannot guarantee the accuracy of their statements.
For a prospective franchisee, this highlights the importance of conducting thorough due diligence. Relying solely on references provided by Deka Lash, especially those who may be incentivized by a referral fee, could present a biased view. It is crucial to independently verify information and seek additional perspectives to make an informed decision about investing in a Deka Lash franchise. Prospective franchisees should directly contact Deka Lash with any questions or concerns and consult with their own advisors.