Can Deka Lash specify that franchisees participate in other programs at their own expense?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Funds contributed to the Brand Development Fund from these digital deals and promotions do not count towards your Brand Development Fees.
Unless we consent in writing, you and your employees must not conduct or be involved in any digital marketing related to our brand, marks or your studio.
If we do permit you to conduct any digital marketing, you must comply with our policies and we may withdraw approval at any time.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
Based on the 2024 Deka Lash Franchise Disclosure Document, Deka Lash has the right, but not the obligation, to offer deals, discounted services, gift certificates, memberships, coupons, or vouchers on third-party websites or apps. If Deka Lash offers any of these deals, they have the right to collect and retain any revenue from such deals, including payments to third parties. Franchisees will not be entitled to receive any payment or reimbursement from Deka Lash, their 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 the franchisee's 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. Franchisees must provide the services and products associated with the deals. Funds contributed to the Brand Development Fund from these digital deals and promotions do not count towards the franchisee's Brand Development Fees.
Unless Deka Lash consents in writing, franchisees and their employees must not conduct or be involved in any digital marketing related to the Deka Lash brand, marks, or their studio. If Deka Lash does permit franchisees to conduct any digital marketing, they must comply with Deka Lash's policies, and Deka Lash may withdraw approval at any time. This indicates that Deka Lash franchisees may be required to participate in programs or deals offered by Deka Lash, potentially at their own expense, as they must provide the services and products associated with these deals without direct reimbursement in some cases.