What constitutes a curable default that could lead to termination of the Deka Lash Area Development Agreement?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Section in | |||
|---|---|---|---|
| Area | |||
| Provision | Developme nt Agreement | Summary | |
| g. | "Cause" defined – curable defaults | 6.2 | We may terminate the Area Development Agreement if you fail to meet your development obligations under the mandatory development Schedule and fail to cure the default within a 30-day cure period. This cure period will only be offered once during the term of your Area Development Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a curable default that could lead to the termination of the Area Development Agreement occurs if the franchisee fails to meet their development obligations under the mandatory development schedule.
Specifically, Deka Lash will provide a 30-day cure period for the franchisee to correct the failure to meet development obligations. However, this cure period is offered only once during the entire term of the Area Development Agreement.
This means that if a Deka Lash area developer falls behind on their schedule for opening new locations, they have a limited time to catch up before Deka Lash can terminate the agreement. It is crucial for prospective area developers to carefully review the development schedule and ensure they have the resources and capabilities to meet those obligations, as failure to do so can result in the loss of their development rights.