Can Deka Lash require a franchisee to participate in advertising programs?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
ensure that all advertising, promotions or public statements are done with the highest ethical standards, are not misleading in any way, and adhere 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.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees are required to participate in advertising programs. Deka Lash can specify online directories, advertising agencies, and other promotional efforts in which franchisees must advertise, and franchisees must pay for the cost of these listings and promotions. Deka Lash has the right to place these listings on behalf of the franchisee and collect the costs. If other franchisees are served by the same advertising, Deka Lash can require group participation and allocate costs equitably among franchisees. These Business Listing & Promotion Fees will be applied against the Local Marketing Requirement.
Additionally, Deka Lash may establish Local Advertising Cooperatives in designated geographic areas, with membership required for franchisees in those areas. These cooperatives administer advertising programs and develop promotional materials, subject to Deka Lash's approval. Franchisees must adhere to the rules of these cooperatives if one is established for their area.
Franchisees must also ensure that all advertising and promotions adhere to ethical standards and legal requirements, using only materials provided or approved in writing by Deka Lash. Deka Lash reserves the right to require franchisees to discontinue any advertising or promotional materials deemed necessary. Franchisees may be required to submit proof of their expenditures on local marketing upon request.