On what date does the Deka Lash Area Development Agreement end?
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. |
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, the Area Development Agreement commences on the date it is fully executed. The agreement concludes on the last day of the calendar month during which the final Franchised Business is required to be opened and operating, as per the mandatory development schedule.
For a prospective Deka Lash area developer, this means the term length is tied directly to their development schedule. The end date isn't a fixed number of years but depends on how quickly they fulfill their obligations to open new locations. This incentivizes developers to adhere to the agreed-upon schedule.
It is important for potential developers to carefully review the mandatory development schedule outlined in their agreement to understand the specific end date of their Area Development Agreement. This date is not explicitly stated as a fixed term but is contingent upon meeting the development obligations. This is a fairly common practice in area development agreements, as the franchisor wants to ensure the developer is actively expanding the brand.