What is the deadline for a Deka Lash franchisee to execute the then-current franchise agreement after it is delivered for renewal?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
you accept from us, the Franchise, license, and privilege to use the Marks, the System, and marketing materials bearing the Marks, for 10 years from the "Effective Date" of this Agreement, as designated on the signature page to this Agreement.
- 2.2 Renewal of Franchise. If you are not in breach of this Agreement, and if you meet the following conditions, and if we are still offering franchises in your geographic area at the time, you may renew the Franchise under the terms of our then-current Franchise Agreement: You must:
- a. Be in good standing and full compliance.
- b.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a franchisee has 30 days to execute the then-current franchise agreement after it is delivered for renewal. Failure to do so may lead Deka Lash to conclude that the franchisee does not intend to renew the franchise agreement.
It is important to note that the terms and conditions of the renewed franchise agreement may differ materially from the original contract. This includes potential changes in royalty fees, brand development fund fees, and other fees. Therefore, franchisees should carefully review the new agreement to understand the updated obligations and costs associated with the renewed franchise.
Additionally, Deka Lash retains the right to refuse renewal if the franchisee fails to satisfactorily comply with the existing agreement. The determination of satisfactory compliance is at Deka Lash's discretion, made in good faith. If renewal is refused, the franchisee must continue to perform under the original agreement until its expiration.