Glamour Dolls failed to comply with those obligations when it engaged in a failed online advertising campaign on Kickstarter, using LFI, Lisa Frank's brand without LFI's approval and then refused to pay royalties due when LFI properly terminated the party's contracts as a result of Glamour Dolls' misconduct. Wait a minute. She didn't know about the Kickstarter? Hello my friend, I will honestly tell you that until late last night, I did not think that I was filming a video about Lisa Frank and Glamour Dolls today. I actually had a full video planned about preservative-free cosmetics and how freaking ridiculous and dangerous preservative-free cosmetics are. But then I got a very interesting comment from a person named "Fake Goth Girl." Okay. I get a link. The link is to a court document that I had not previously had access to. This document is Lisa Frank's point of view. It is her counter suit. This is Lisa Frank saying "Glamour Dolls is the bad guy, not me. I didn't do anything wrong - they're the ones that did something wrong." So in today's video, I want to go over Lisa's side of things - what she says in the court documents is the reason why she pulled out of her contract with Glamour Dolls that left backers of the Kickstarter out all of their money - over $400,000 of their money, including my money. My $75? Gone. If you have no idea what I'm talking about, that's because this is Part 2. I strongly strongly suggest you please watch Part 1 of this. It will be linked below. It will be up in a card. It is the background for this video - this video might not make sense if you don't watch that one first. If you don't feel like you have time for an hour and a half long video, what you can do is you can scrub through the timestamps, kind of get the idea of what it is. You can also play it on 1.5 speed if you want to. And I will tell you that the average amount of watch time on that video for a single view is about 40 minutes. That has literally never happened on my channel. This is a story that I think you want to hear and and that I think that you are going to be engaged in if you choose to. That being said, we are starting at Part 2. I'm assuming at this point that you have seen that video and that you have that background knowledge. And also, side note, I mentioned this at the end of the video, but there's probably about 40 comments mentioning Bailey Sarian's video on Lisa Frank, based on the Jezebel article that we talked about in the first part of this. Yes, I am fully aware of Bailey's video. I have met Bailey. I have collaborated with Bailey. Bailey did a fantastic job on that video. That video is more about Lisa Frank as a person, so if you want even more context for the story, I highly recommend you go watch Bailey's video as well. What we're gonna do with this part is I'm actually gonna put Lisa Frank's lawsuit on the side of me so if you are fluent in Legalese, you can follow along and see the match up of what I'm saying. Surprisingly, a lot of is is pretty clear cut and there isn't a ton of lawyer language in this that was difficult to understand. So if you would like to read along, it is going to be next to me over here. Here we go. So this is what Lisa says. This is her side of things. This is all about the deal in 2016, the original deal that she had. Lisa says they struck the deal in June of 2016 that would end on December 31st of 2017 - that matches up with Glamour Dolls' side, so I'm assuming there's legal contracts, so there's evidence of this. So Glamour Dolls in that original contract, agreed to pay Lisa Frank 15% royalty on the net sales of the products made under the deal, with a minimum payment of $100,000 for the duration of the agreement, including a $25,000 advance. Glamour Dolls promised to do their best, to make, sell, promote, and market the products to get as many sales as possible, always focusing on high quality. Now this part is very very important because this is really the root of why everything went wrong. They had to get Lisa Frank's approval on literally everything, from the design concepts to the artwork, to the molds for production, to the final product samples before going into production. Lisa Frank had the right to approve or reject the elements and Glamour Dolls had to follow Lisa Frank's directions on quality standards. Now listen to this because this is part of the reason why things were taking so long. So, for designs, Glamour Dolls had to wait up to 10 business days - that's about two weeks or so - for Lisa Frank to approve or reject anything that they submitted to her. If Lisa didn't respond in time, Glamour Dolls was allowed to ask after those 10 business days, "Hey, what's going on? I need a full description of why you reject this or I need an approval." But this is the kicker! Because even after approval, and remember, this is according to Lisa herself, Lisa could stop the production and distribution of the products if they didn't meet her quality standards. That's a subjective thing - that is not something that can be measured. Lisa can just for any reason, just say "This doesn't meet my quality standards" and stop production at any point. And it wasn't just for production of product. It also had to do with advertising, packaging, display methods, press releases - anything using Lisa Frank artwork - Glamour Dolls had to run this by Lisa. They had to wait for those 10 business days and then if she didn't respond in 10 business days, then they had to poke her about it and be like "Dude, what's going on?" They had to keep poking her if she didn't respond after those 10 business days. So remember this original contract that I personally believe was to create the blush, the highlighter, and the two brushes - that contract was ending in December. But remember the Kickstarter had started in February. We're now in December. February - they promised backers 10 additional products beyond these four that had already been funded. Lisa's contract is about to end, so they need to start a new contract. This is what Lisa says was in the new contract: same 15% royalty on the net sales of the products plus 20% royalty on sales made directly to retail customers. So this would be if people bought it off of Ipsy's marketplace or if people bought it from Hot Topic, or at one point they were talking to Walmart - any of those, Lisa would get a 20% royalty off of. Beyond that, in the first contract, Lisa asked for at least $100,000 for her fees. In the new contract, Lisa upped that to $500,000. That included an up front payment of $125,000 that needed to be paid when the contract was signed. Three more payments would be paid throughout the year to total that $500,000. The rules for making the products were pretty much the same as the first contract. All of the levels of "you need to send it to Lisa and she needs to approve it" and then the 10 business days - all of that was pretty much the same. The only thing that changed, which we'll find out more about in just a minute, is that they did not have to get pre-shipment approval. So Lisa has already approved the final draft of the product, they have put that into production, they now have the products - they've got thousands and thousands of these products - they don't have to send those products to Lisa for approval anymore. But there is a clause - because of course there is - if there were any production problems, if after all of these things were sent out and Lisa decided that there was a production problem, there was something she didn't like, Glamour Dolls would have to pay damages for that. What would those damages be? I have no idea, it's not in here. Another thing that's very important in Lisa's side of the story is that they said that Lisa could end the deal immediately if Glamour Dolls broke certain rules, like not following the approval process or having production issues 3 times. If Lisa decided that she was going to terminate the agreement, Glamour Dolls had to not only stop making products, they had to stop selling their existing products. Then they had to turn over the rights to the artwork. Anything that Lisa had created for Glamour Dolls would now be owned by Lisa. And you might be seeing where this might be going - maybe if you watched part 1. Because she did that. That happened. In context. you have to remember that this is 3 months past the date that Glamour Dolls had promised products would be done and shipped to backers. So they are deep deep in it now. They are sending out that digital Christmas card, where people can send it to their families, saying "Hey, you know, you might be getting some Lisa Frank products that I bought for you at some point. This is what's coming." That's where we're at. A lot of the backers are already irritated by this point. From Lisa's side, she says in her court documents that LFI, or Lisa Frank Incorporated, fully performed its obligations under the license agreements - I do believe Glamour Dolls would argue against that. They say specifically Glamour Dolls repeatedly failed to meet their responsibilities under the agreemnts they had with Lisa Frank. This is how Lisa says Glamour Dolls messed up. And remember, she's going to have to prove this for her counter suit. This is what she says - she says they didn't put in enough effort to produce, distribute, promote, and sell the products that they were supposed to. She says that they didn't aim to sell as many high quality products as they could, that they had signed off in their contract. She says that they use Lisa Frank artwork in ads and packaging without getting approval first, which was against their rules of the contract. She says Glamour Dolls was late in making and delivering the products, which they were. She says that Glamour Dolls didn't follow the agreed upon process for getting products inspected and approved, that they didn't pay the royalties and the minimum amounts that they were supposed to, and that they used the Kickstarter to sell products without getting the okay from Lisa Frank Incorporated, which was of course not allowed. Finally, they say that Glamour Dolls promised products to backers and then never shipped them out, which is true. But the question is: why didn't they ship them out? What was stopping them from doing it? Was it a fault of Glamour Dolls or was it a fault of Lisa? We're still in Lisa's perspective, so let's follow that. Lisa says that even through all of the things that I just listed - the things that are in Lisa's filing - she continued to try to work with Glamour Dolls to make things work. She says she did this only because she felt like, if she didn't continue with Glamour Dolls and see this through and get the backers what they ordered, that it would damage Lisa Frank. It would damage her and her brand. It wasn't about making sure that people got what they paid for, it was about the damage it would cause to her reputation and her brand's reputation. She says in her statement that, you know, that Glamour Dolls had made all these promises and they failed to go through on them, that they even said that they were shipping things to people that they never shipped to them, which I don't know if it's actually true. Because from what I've seen, anybody that was supposed to get the eyeshadow and the bronzer and the postcard did get those things. There is some question, at least in the comments underneath my last video of whether people who ordered the brush separately, whether they actually got their brush. So maybe that's what Lisa is talking about. Lisa says that Glamour Dolls ignored rules that they had to follow to get Lisa's approval before making anything. She says that they attempted to make or change products without talking to her first. And also that they didn't give her the samples required that she needed to review. The perspective here is that because of those failures, people started blaming Lisa Frank and not Glamour Dolls, where she's saying it wasn't her fault, it was Glamour Dolls' fault. She said that people began to think that Lisa Frank was scamming