What is the amount of the surety bond obtained by Deka Lash in Washington?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
amount that will be adjusted annually for inflation). As a result, any provisions contained in the franchise agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington.
RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such provisions contained in the franchise agreement or elsewhere are void
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash obtained a surety bond in the amount of $100,000. The Washington Securities Division requires Deka Lash to maintain this surety bond until all Washington franchisees have completed their initial training and are open for business, or until the Administrator provides written authorization to the contrary.
This surety bond serves as a form of financial protection for Deka Lash franchisees in Washington. It ensures that Deka Lash meets its obligations to its franchisees, particularly regarding initial training and opening support. If Deka Lash fails to fulfill these obligations, franchisees may be able to make a claim against the bond to recover losses.
It is important for prospective Deka Lash franchisees in Washington to understand the conditions under which this surety bond is maintained. Franchisees should confirm with the franchisor and the Washington Securities Division that the bond is active and what specific protections it offers. This provides an added layer of security for franchisees investing in a Deka Lash franchise in Washington.
This requirement reflects Washington's regulatory oversight of franchise operations, aiming to protect franchisees' investments and ensure franchisors comply with their contractual obligations. Franchisees should be aware of these protections and understand how to utilize them if necessary.