Does Deka Lash reserve the right to change any Local Advertising Cooperative?

According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash retains the authority to modify Local Advertising Cooperatives. Specifically, Deka Lash reserves the right to form, change, dissolve, or merge any Local Advertising Cooperative. This gives Deka Lash significant control over the structure and operation of these cooperatives.

Local Advertising Cooperatives are designated by Deka Lash, typically based on Designated Market Areas as determined by the A.C. Nielsen Company. These cooperatives consist of all franchised businesses and outlets operated by Deka Lash or its affiliates within a specific geographic area. The primary purpose of these cooperatives is to administer advertising programs and develop promotional materials, subject to Deka Lash's approval, for use by its members in local advertising.

If a Local Advertising Cooperative is established in the franchisee's area, membership is mandatory, and franchisees must adhere to the cooperative's rules. Franchisees are required to contribute to the Local Advertising Cooperative, with the contribution amount determined by the members and subject to Deka Lash's approval. All outlets within the cooperative, including franchisor-owned outlets, must contribute on the same basis, whether it's a uniform percentage of revenue or a fixed amount. Each member has one vote for each franchised business they operate within the cooperative's geographic area.

Any contributions made by the franchisee to the Cooperative will be credited against their Local Marketing Requirement. This means that the money spent on the cooperative counts towards the franchisee's obligation to spend $2,000 per month on local marketing. Given Deka Lash's right to alter these cooperatives, prospective franchisees should inquire about the potential for changes and how those changes could impact their marketing strategies and costs.