Does Deka Lash require franchisees to actively participate in the daily affairs of the business?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
We have not represented that this business is going to be easy for you, your partners, officers or directors.
You must actively participate in the daily affairs of the business.
You are expected to participate actively in franchisee meetings, seminars, conferences, and supplemental training we sponsor.
You represent that you are in good health and able to devote your efforts in the day-to-day operations of your franchise or that you have the business management skills necessary to successfully hire and supervise a manager to run the day-to-day operations of your Franchise.
- (b) Supervision. You agree that the services of the Franchised Business will be provided under your direct supervision and control or under the direct supervision and control of a full-time general manager who has successfully completed our initial training.
Your studio manager (if applicable) and all employees that have access to client accounts or as required by local law, must be able to pass a criminal background check based on our minimum requirements as specified in the Operations Manual.
You must ensure that your business managers comply fully with all applicable terms of this Agreement including maintaining all confidential information, not competing with us and safeguarding all relevant documents, manuals, etc.
- (c) Principal Owner. You must designate one (1) owner with at least 10% ownership as the "Principal Owner." The Principal Owner is the primary owner responsible for your business and communication with us.
The Principal Owner must have authority over all transactions and dealings related to your studio and must have power to create binding agreements with us.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, franchisees must actively participate in the daily affairs of the business. Deka Lash acknowledges that operating a franchised business involves hard work and potentially long hours, similar to most owner-operated small businesses.
However, the FDD also states that franchisees can hire a full-time general manager to supervise and control the services of the Franchised Business, provided that the manager has successfully completed Deka Lash's initial training program. Additionally, Deka Lash requires the franchisee to designate a Principal Owner with at least 10% ownership. This Principal Owner is responsible for the business's operations and communication with Deka Lash and must have the authority to enter into binding agreements with Deka Lash.
In summary, while Deka Lash expects active participation, it allows for the delegation of day-to-day supervision to a trained manager, with the franchisee maintaining overall responsibility through a designated Principal Owner. This provides some flexibility for franchisees who may not be able to dedicate themselves fully to the daily operations but still need to ensure proper management and compliance with the franchise agreement.