factual

Can Deka Lash require a franchisee to participate in promotional programs?

Deka_Lash Franchise · 2024 FDD

Answer 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 the 2024 Deka Lash Franchise Disclosure Document, Deka Lash franchisees are required to participate in promotional programs. Deka Lash may specify online directories, advertising agencies, advertising fees, and other promotional efforts in their manuals, and franchisees agree to advertise at their own expense as directed by Deka Lash. Deka Lash has the right to place listings, advertising, fees, or promotions on behalf of the franchisee and collect the costs from them. If multiple franchisees are served by the same promotional efforts, Deka Lash can require group participation, make direct arrangements, and allocate an equitable part of the cost to each franchisee.

Deka Lash may also designate geographic areas for local advertising cooperatives. If a Local Advertising Cooperative is established for the franchisee's area, either when the Franchise Agreement is signed or during its term, the franchisee must become a member and abide by the cooperative's rules. These cooperatives are organized to administer advertising programs and develop promotional materials, subject to Deka Lash's approval, for use by the members in local advertising.

Franchisees must also ensure that all advertising, promotions, or public statements meet ethical standards, are not misleading, and adhere to all applicable laws. Franchisees are required to use only advertising, press releases, public statements, and promotional materials provided by or approved in writing by Deka Lash. Deka Lash reserves the right to require franchisees to discontinue any advertising, promotions, or promotional materials they deem necessary. Franchisees must also provide proof of their expenditures on local marketing upon request.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.