What criteria must a transferee meet to be approved by Deka Lash?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Area Developme nt Agreement | Summary | |---|---|---| | a. Length of the franchise term | 6.1 | The Area Development Agreement will commence on the date it is fully executed and end on the last day of the calendar month that the final Franchised Business is required to be opened and operating under the mandatory development schedule. | | b. Renewal or extension of | Not | Not Applicable. | | the term | Applicable | | | c. Requirements for franchisee to renew or extend | Not Applicable | Not Applicable. | | d. Termination by franchisee | Not | You may terminate under any grounds permitted | | | Applicable | by law. | | e. Termination by franchisor | Not | Not Applicable. | | without cause | Applicable | | | f. Termination by franchisor | 6.2 | We may terminate the Area Development | | with cause | | Agreement for cause. |
| Provision | Franchise Agreement | Summary
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 transferee must meet certain criteria to be approved. Specifically, the transferee must meet Deka Lash's criteria, execute the then-current Franchise Agreement, and pay any applicable initial franchise fee. Additionally, the transferee must satisfactorily complete Deka Lash's initial training program, obtain all necessary licenses and permits, and secure any required lessor approval for the transfer.
Furthermore, the terms of the proposed transfer, including the purchase price, must not be so burdensome that they impair or materially threaten the future operation of the Deka Lash franchise. The transfer must also comply with all applicable laws.
It is important to note that Deka Lash retains a right of first refusal to match any purchase offer for the franchise, any interest in the franchise, or substantially all of the assets of the Franchised Business. This means that even if a transferee meets all the listed criteria, Deka Lash can still choose to purchase the franchise themselves, preempting the transfer. A prospective franchisee should carefully consider these conditions and their implications for any potential future sale of their Deka Lash franchise.