What is the deadline for Deka Lash to maintain surety bond coverage in Washington?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
forcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a result, any provisions contained in the franchise agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington.
RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such provisions contained in the franchise agreement or elsewhere are void
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash must maintain a $100,000 surety bond in Washington until certain conditions are met. Specifically, the Washington Securities Division requires Deka Lash to maintain this bond until all Washington franchisees have (1) received all initial training they are entitled to under the franchise agreement or offering circular, and (2) are open for business.
Alternatively, Deka Lash can discontinue the surety bond if the Administrator of the Washington Securities Division issues written authorization to the contrary. This means that the surety bond requirement could be lifted earlier if Deka Lash obtains explicit permission from the Washington Securities Division.
For a prospective Deka Lash franchisee in Washington, this condition provides some assurance that Deka Lash is fulfilling its initial obligations, such as training, before the franchisee opens their studio. It also highlights the importance of confirming with Deka Lash and the Washington Securities Division whether the surety bond is still active and what conditions must be met for its release.