What constitutes abandonment of the Deka Lash franchise that would allow termination?

According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash has the right to terminate the Development Agreement if the developer ceases to actively engage in development activities or abandons their development business. This abandonment is defined as occurring for three consecutive months. However, Deka Lash can also terminate the agreement if the period is shorter but indicates an intent to discontinue development of Franchised Businesses within the Development Area.

This clause is significant for potential Deka Lash developers as it sets clear expectations for their engagement in development activities. If a developer fails to meet these expectations, Deka Lash can terminate the agreement without allowing an opportunity to cure the default. This could result in the developer losing their rights to open and operate additional Deka Lash units within the Development Area.

In addition to abandonment, Deka Lash can terminate the Development Agreement if the developer becomes insolvent, fails to meet the development schedule without curing the default within 30 days of notice, or if any associated Franchise Agreement is terminated. Upon termination, Deka Lash can establish or license others to establish Deka Lash units within the previously reserved Development Area without any restrictions.