Who retains the revenue from deals offered by Deka Lash on third-party websites?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
eting including all digital marketing related to your studio. Unless we consent in writing, you or your employees may not conduct any digital marketing that uses our marks or relates to your studio, including through an independent website, or social media account. We may withdraw approval at any time and you must immediately modify or delete any digital marketing as required.
- (b) Digital Deals and Promotions. We have the right, but not the obligation to offer deals, discounted services, gift certificates, memberships, coupons, or vouchers on third party websites or apps such as Living Social. Facebook or Groupon and their associated reach (be it digital or otherwise). If we offer any deals, coupons, gift certificates, vouchers or such, we have the right to collect and retain any revenue from such deals, including payments to third parties and you will not be entitled to receive any payment or reimbursement from us, our affiliates, third parties, or the customers that purchase the services, deals, vouchers, gift certificates or coupons if the related services have not been provided by your Franchised Business. Any net cash gain to the company however, (revenue minus associated expenses, such as the costs and fees charged by the third-party websites and apps), not directly paid to a studio, will be contributed to the Brand Development Fund and spent accordingly. You must provide the services and products associated with the deals.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash retains the revenue from deals, discounted services, gift certificates, memberships, coupons, or vouchers offered on third-party websites or apps. These third-party platforms include Living Social, Facebook, and Groupon. This means that Deka Lash, not the franchisee, has the right to collect and keep any revenue generated from these deals.
This arrangement includes payments made to third parties. The franchisee will not receive any payment or reimbursement from Deka Lash, its affiliates, third parties, or customers who purchase these services, deals, vouchers, gift certificates, or coupons if the related services have not been provided by the franchisee's business. However, any net cash gain to Deka Lash (revenue minus associated expenses like fees charged by the third-party websites and apps) that is not directly paid to a studio will be contributed to the Brand Development Fund and spent accordingly.
As a Deka Lash franchisee, you are obligated to provide the services and products associated with these deals. Furthermore, unless Deka Lash provides written consent, franchisees and their employees are prohibited from conducting or being involved in any digital marketing related to the Deka Lash brand, marks, or the studio. If digital marketing is permitted, it must comply with Deka Lash's policies, and Deka Lash retains the right to withdraw approval at any time. This policy ensures that Deka Lash maintains control over its brand and marketing strategies, even when deals are offered through third-party platforms.