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 them, leaving negative comments

and complaints online that damaged LFI's

reputation. It was only because Glamour

Dolls broke their side of the contract

so many times that she ended the contract

formally in July of 2018, which is what

Glamour Dolls had said, that she abruptly

just ended the contract. What Glamour

Dolls had said was before she ended the

contract, she required them to pay that

final $125,000 to her and then once she

got the money, she terminated the contract

and that they didn't know she was going to

do that when she took the money.

Supposedly, LFI reminded Glamour Dolls

that they needed to do the things that

were in the contract, that if she ended

it, that they needed to do - things like

returning all the artwork and paying any

royalties owed. However, she says Glamour

Dolls didn't pay what they owed or follow

through on other responsibilities after

the termination, leading to more problems

and losses for LFI. So at the final part

of the complaint, Lisa says "This is what

I want the court to give me." She says she

wants to be paid damages, which means all

of the money that they should have

received under the agreements with Glamour

Dolls - the exact amount of how much she

should be paid would be decided at trial.

Then she wants to be paid back for all of

the costs and all of the expenses and the

lawyer's fees as allowed by law. She also

wants to receive interest on any money

awarded to them, both before and after the

court's decision at 18% per year and it

looks like, you know, this happened in

2018, it's now 2024, so that's a lot of

freakin' interest. I'm not going to do the

math in my brain right now because it's

physically and mentally impossible for me

but that's a lot of money. And finally,

she's like "And if the court wants to

give me something else, if you think

there's something else that's fair, feel

free. You can give me that too." So that

is Lisa's filing. I have lots of thoughts

my friend. Do you have thoughts? Because

if you have thoughts, put 'em in the

comment section because I'm wondering if

we have the exact same thoughts. That's

what the collective brain is all about, is

us bouning ideas off of each other and in

a recorded video, it's a little harder. So

if you have thoughts, definitely leave

them in the comments. I'm gonna tell you

mine. Okay, so I have questions. [laughs]

I have 3 major questions. The first one is

"What was the timeline for approving the

Kickstarter?" Because eventually, Lisa was

participating in the Kickstarter, at least

it looks like she was participating in the

Kickstarter. So I am curious what Glamour

Dolls' side of this is, in that do they

say that they did the Kickstarter without

talking to Lisa? Because I noticed

something that was in their paperwork that

they filed. They label Kickstarter as a

business that they were trying to get to

work with, right? So it's listed in with

Ipsy and Hot Topic; they also list

Kickstarter. So it was seen by them - it

looks like - as just another way to sell

products and I don't know if that was in

the contract, that they had to clear what

retailers they were gonna work with with

Lisa. Where I think that Lisa may have

them on this is that they had to use Lisa

Frank artwork and they had to promote this

using Lisa Frank branded stuff for the

Kickstarter before it even started.

Remember Candy's video. I wish I could

show you the video - it is killing me that

this video is private and I can't show

you the full video. But Candy clearly

uses Lisa Frank artwork in the video to

promote this Kickstarter. If Lisa didn't

know about the Kickstarter, then she

didn't approve the artwork to be used in

Candy's video or any other promotional

things that they did for the Kickstarter.

So then Lisa would have them on that.

That's what I'm thinking most likely

happened - I mean of course it's possible

that Glamour Dolls did talk to Lisa and

tell her about the Kickstarter beforehand

and did get all of the artwork approved

and all of that, but it sounds like Lisa

is saying "No, that didn't happen." So

my next question associated with that -

it's kind of a sub question to question

number 1 - is "When did Lisa find out

about the 10 products that they promised

to the Kickstarter backers? When did she

agree to that?" Because it seems like that

first contract from 2016 was really for

those 4 products that they actually did

produce and put out there - the blush

brush, the crease brush, the bronzer, and

the eyeshadows. Single eyeshadows, not

eyeshadow palettes, the single eyeshadows.

The ones that were sold at Hot Topic. It

is very very likely that Lisa was on board

with the Kickstarter about a month after

the Kickstarter started because in March,

they show posts that are specifically from

Lisa, participating in encouraging people

to enter these contests, to perform these

tasks, to show their nail looks and things

like that. Lisa is posting there. So if

this is really Lisa posting - which it

doesn't really make any sense to me that

it wouldn't be Lisa because Glamour Dolls

wouldn't be able to, like, hide that from

Lisa - they would have to explain that

so it doesn't really make sense to me

that that wasn't actually Lisa posting.

But she was clearly participating and

on board in March. Another clue that Lisa

was involved in the Kickstarter from the

launch of the Kickstarter was that just

a few days after the launch, Glamour

Dolls posted that Lisa was going to go

into her vault and the first 1,000 backers

were going to get a very special gift

from Lisa in their box when they got their

stuff. They would get a second - what they

called a treat - if they hit 2,000 backers

and that Lisa had something really special

planned if they made it to 10,000 backers.

So I'm very curious to see if this piece

comes out in court. My second question is

"Why the hell did Glamour Dolls sign this

terrible ass contract?" This is the most

bull**** contract I think I have ever

read. It is absolutely nuts. The part that

is the most unbelievable for me is that

Glamour Dolls signed this is the whole

approval process. It is absolutely

ridiculous. Both sides agree that this was

the process. So they have an idea, right?

They start with the idea. Let's use the

Trapper Keeper palettes as an example.

So they have an idea that they want to

create a palette that looks like a Trapper

Keeper. So they get this plain white

Trapper Keeper palette made by the

factory. Glamour Dolls then takes this

white packaging, this plain plastic

packaging that's the mock-up, send it to

Lisa, wait 10 business days. If she

doesn't answer, they have to poke her and

get her to give feedback. If she does

approve of it, Glamour Dolls then takes

her ideas, whatever she wants changed, and

lets the manufacturing facility know. Then

they get another mock-up. Then they send

that to Lisa. They wait 10 days, they wait

for the feedback. All of that happens all

over again until Lisa's happy. I didn't

see anything on either said that said Lisa

had a limit to how many changes she could

make. So let's assume she's now approved

the mold. Now they have to wait for Lisa

to make the artwork. Once the artwork

comes in, again, they send it over to the

manufacturer. The manufacturer puts it on

the product. Then Glamour Dolls has to

have two samples of it that they then send

over to Lisa and wait those 10 business

days again. If she doesn't respond, then

they poke her - same process all over

again, where she can either reject it or

accept it. Do you see how this is so

freaking ridiculous? Because it's not even

over then! Even after Lisa has approved

the final designed product, when they

manufacture it - let's say they make

10,000 of them, because this did happen -

they make 10,000 of them, they have to

send 2 of the 10,000 to Lisa for final

approval before they can ship those out

to customers. And I will tell you my

friend, this actually happened -

according to Glamour Dolls - with the

vegan leather makeup bag. This is the

draft picture of the vegan leather makeup

bag that was not designed, that people

really excited about. This is the final

design that was supposedly "The One," the

makeup bag. Well it turns out, according

to Glamour Dolls, Lisa didn't like this

and after they had printed 10,000 of

these, Lisa said she didn't want it to be

vegan leather anymore; she wanted it to

be glitter plastic. And because of the

sh**** ass contract that they signed,

they couldn't sell those 10,000 bags that

they had already made because she had

approved the sample. They had to start all

over again with a glitter bag design. I

mean how f***ing ridiculous is this? The

fact that Glamour Dolls signed this

contract, did they not have a lawyer

read it? Like what happened? How did this

get through? From the very jump, this

should have just never happened and I'm

sure Glamour Dolls in hindsight is

thinking the exact same thing. And my

third question is "Why would they start a

Kickstarter in February, knowing that

Lisa's contract was ending in December?"

Because that's where they really got

screwed. This is what I'm thinking: I'm

thinking Lisa designed all of the products

and got everything going for those first

four products before the Kickstarter

even started. And that was why Glamour

Dolls wanted to do more work with her.

They were like "Yes, this was so smooth,

this was so easy. Let's keep this going a

little longer. We have until December,

it's only February. We have all this time.

We pushed out those four products pretty

quickly as far as getting through this

process, so let's do 10 more! We've got

this." Glamour Dolls said publicly that

they didn't start having problems with

Lisa slowing down the process until June

of 2017. So that was after the Kickstarter

had already started, but before the

estimated ship date that they told the

backers of September. And it makes sense

because if they started signing the

contract in June of 2016, by February,

they had made and designed 4 products.

Assuming that Lisa was done with all of

the designs and all of the things and all

of the approvals by the time that the

Kickstarter started so that's about 8

months. So they're thinking "Well yeah

this was so easy, we should be able to

push out more products by December, by

the time Lisa's contract ends." So now I

shall present to you the worst case

scenario of Lisa's a raging b****.

[laughter] That's where we're gonna go

with this. This is worst case scenario

what happened, in that Lisa knew her

contract was ending in December, she knew

that she could slow down this process in

order to get a new contract in December

and price gauge the hell out of Glamour

Dolls. She knew that they had already

promised all of these products to the

backers. She knew that they probably

given her $125,000 of the backers' money.

She knew that Glamour Dolls was already

using the backer money in order to get

these samples and ship them to her. The

$370,000 that the backers had paid,

probably a lot of it was already spent

because that's why they started wanting -

needing more money. They started selling

the products on BackerKit, they started

selling the crease brush on their website,

they really started courting Hot Topic to

try to sell products over there because

Lisa was taking all of the Kickstarter

backers' money for herself and they were

using it for the manufacturing of these

products and they knew it wasn't enough to

see this whole project through because

remember they've got 10 products they're

trying to make by December. So time

passes, Lisa drags this out, drags this

out, and then drops the bomb on Glamour

Dolls: "If you want this to continue,

after all this money that you spent,

you're gonna have to pay me $500,000, not

$100,000 anymore. It's $500,000 and you

know when you sell to Hot Topic? You're

not gonna give me 15%, you're gonna give

me 20%." But at that point, they were so

far deep in it that they couldn't get out

of it. They absolutely couldn't get out

of it. Another place that they probably

spent the backers' money was on Wengie

because remember the call that Peter did

with the backers? He mentions very

briefly paying for a video. I'll play that

for you.

(Peter): We actually didn't make a profit

off of this Kickstarter campaign. I know

that's, um, it's a hard thing for people

to, um, to kind of believe with the size

of it. But, um, we have to manufacture all

those goods, uh, we have licensing fees

to pay to Lisa, um, we had to pay for, you

know, uh, for production of the video and

for all these different things.

(Jen) I don't know this for a fact but

I think he took the money from the backers

and paid Wengie to make that video.

Who knows how much he paid her because

influencer rates back then, you know, it

was brand new, you know, influencers

getting paid for sponsored videos and

things like that. I have no idea how much

they paid Wengie but I would imagine that

was part of where the money was going and

why they needed to raise more money.

Because now in December, they not only

have to get all of these 10 products

manufactured but they also have to pay

Lisa this $500,000. Lisa officially had

Glamour Dolls by the unicorn balls. I mean

like, she was-she had them. They had no

choice, in my opinion,