Does Deka Lash receive compensation for reselling licenses?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- c.
Develop and establish other business systems (including systems that distribute products or services similar to those offered at Deka Lash businesses) using other names or marks, and grant licenses to use those systems.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
The 2024 Deka Lash Franchise Disclosure Document outlines specific rights that Deka Lash retains, including the right to develop and establish other business systems and grant licenses to use those systems. This means Deka Lash can create similar businesses under different names or marks and license them out. However, the document does not explicitly state whether Deka Lash receives compensation or fees from reselling licenses to franchisees.
While Deka Lash reserves the right to establish other business systems and grant licenses, the FDD does not specify if they receive direct compensation from these activities. This is a crucial point for potential franchisees to understand, as it affects the franchisor's revenue streams and could influence the support and resources available to franchisees.
Prospective Deka Lash franchisees should directly ask the franchisor for clarification on this matter. Specifically, they should inquire whether Deka Lash receives any fees or compensation from the licensing of other business systems that might compete with or operate alongside the Deka Lash franchise system. Understanding this aspect of the franchisor's business model is essential for making an informed investment decision.