What are the consequences if a Deka Lash franchisee fails to obtain approval of a site?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.1 Location for Franchise Premises. You will operate your Franchised Business at the Franchise Location that we have approved as designated in Section 2 of the Schedule 1 of this Franchise Agreement.
We base approval on our site selection criteria in our Manual.
You must operate the Franchised Business only from the site we approve.
- 3.2 Permitted Uses. You may operate the Franchised Business only at the approved site and may not relocate without our approval.
You must sell approved products and provide approved services only at the Deka Lash studio you operate under a Franchise Agreement with us.
- 3.3 Relocation of the Franchised Business.
We will not normally approve the relocation of the Franchised Business unless there is a material change in economic or other factors affecting your outlet.
We will not normally allow you to open additional outlets within your Protected Area.
If you lose possession of the Location through no fault of your own, or if we give our approval, you may apply to us for our approval to relocate your business to another site in the designated area, provided such a site is available.
We will approve or disapprove the relocation of your outlet, typically within 14 business days of your submission of the required site selection documents required by us.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, a franchisee must operate their Franchised Business only from a site that Deka Lash approves. Approval is based on the site selection criteria outlined in Deka Lash's Manual. A franchisee cannot relocate without Deka Lash's approval and can only sell approved products and services at the approved Deka Lash studio.
Normally, Deka Lash will not approve relocation unless there is a significant change in economic or other factors affecting the outlet. If a franchisee loses possession of their location through no fault of their own, or if Deka Lash approves, the franchisee can apply to relocate to another site in the designated area, assuming a site is available. Deka Lash typically makes a decision on relocation within 14 business days of receiving the required site selection documents.
These stipulations ensure that Deka Lash maintains control over brand consistency and market strategy. Failing to obtain site approval could result in the franchisee being in breach of the franchise agreement, potentially leading to termination of the agreement. Prospective franchisees should carefully review Deka Lash's site selection criteria and relocation policies to understand their obligations and limitations.