What are the conditions for Deka Lash's approval of a proposed sale or transfer of the franchised business?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 14.5 Conditions for Approval of Transfer. We may condition our approval of any proposed sale or transfer of the franchised business or of your interest in this Agreement upon satisfaction of the following occurrences:
- a) You are current in all monetary obligations to us, our affiliates, and our designated/approved suppliers and vendors;
- b) You are in full compliance with this Agreement;
- c) You execute any transfer, amendment, or release forms that we may require;
- d) You or the transferee will provide to us a copy of the proposed documents as we may request to evidence the transfer;
For a transfer under Section 14.2 above, the following conditions also apply:
- e) The transferee must be approved by us and demonstrate to our satisfaction that s/he meets our educational, managerial and business standards; possesses a good moral character, business reputation and credit rating; has the aptitude and ability to conduct the business to be transferred; and has adequate financial resources and capital to meet the performance obligations under this Agreement;
- f) The transferee must execute our then-current Franchise Agreement;
- g) You or the transferee must pay to us the Transfer Fee specified in Section 4 above;
- h) The transferee must satisfactorily complete our initial training program at the transferee's expense within the time frame we establish;
- i) You must comply with the post-termination provisions of this Agreement;
- j) The transferee must obtain within the time limits set by us and maintain thereafter, all permits and licenses required for operation of the Franchised Business;
- k) To the extent required by the terms of any leases or other agreements, the lessors or other parties must have consented to the proposed transfer;
- I) The transfer must be made in compliance with any laws that apply to the transfer, including state and federal laws governing the offer and sale of franchises;
- m) The purchase price and terms of the proposed transfer are not so burdensome to the prospective transferee as to impair or materially threaten its future operation and performance under its franchise agreement;
- n) You must request that we provide the prospective transferee with our current franchise disclosure document:
- o) Our approval of the transfer will not constitute a waiver of any claims we may have against the transferring party;
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash may require certain conditions be met before approving the sale or transfer of a franchised business. These conditions include the franchisee being current on all monetary obligations to Deka Lash, its affiliates, and approved suppliers and vendors, as well as being in full compliance with the Franchise Agreement. Additionally, the franchisee must execute any transfer, amendment, or release forms that Deka Lash requires and provide copies of proposed transfer documents.
For transfers, the potential buyer must also be approved by Deka Lash. The buyer needs to meet Deka Lash's standards for education, management, and business acumen. They must also have a good moral character, business reputation, and credit rating, along with the aptitude and financial resources to run the business successfully. The buyer will also need to sign Deka Lash's current Franchise Agreement and complete the initial training program at their own expense within a specified timeframe.
Furthermore, the franchisee or the buyer must pay the transfer fee outlined in the Franchise Agreement. The franchisee must also adhere to the post-termination provisions of the agreement. The buyer is responsible for obtaining and maintaining all necessary permits and licenses for operating the Deka Lash franchise. Consents from lessors or other parties involved in leases or agreements must be secured for the transfer to proceed. The transfer must comply with all applicable laws, including state and federal franchise laws. The purchase price and terms of the transfer should not be overly burdensome to the buyer, ensuring their future operational success. Deka Lash requires that the prospective buyer receives a copy of the current Franchise Disclosure Document, and Deka Lash's approval of the transfer does not waive any claims they may have against the transferring party.