factual

What is the dependency between the Deka Lash Franchise Agreement and the approved site?

Deka_Lash Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 3.1 Location for Franchise Premises. You will operate your Franchised Business at the Franchise Location that we have approved as designated in Section 2 of the Schedule 1 of this Franchise Agreement.

We base approval on our site selection criteria in our Manual.

You must operate the Franchised Business only from the site we approve.

  • 3.2 Permitted Uses. You may operate the Franchised Business only at the approved site and may not relocate without our approval.

You must sell approved products and provide approved services only at the Deka Lash studio you operate under a Franchise Agreement with us.

  • 3.3 Relocation of the Franchised Business.

We will not normally approve the relocation of the Franchised Business unless there is a material change in economic or other factors affecting your outlet.

We will not normally allow you to open additional outlets within your Protected Area.

If you lose possession of the Location through no fault of your own, or if we give our approval, you may apply to us for our approval to relocate your business to another site in the designated area, provided such a site is available.

We will approve or disapprove the relocation of your outlet, typically within 14 business days of your submission of the required site selection documents required by us.

Source: Item 23 — RECEIPT (FDD pages 63–234)

What This Means (2024 FDD)

According to Deka Lash's 2024 Franchise Disclosure Document, the Franchise Agreement is directly tied to the approved location. Deka Lash requires franchisees to operate their Franchised Business only at the location that Deka Lash has approved, as designated in the Franchise Agreement. This approval is based on Deka Lash's site selection criteria outlined in their Manual.

The franchisee is only allowed to operate the Deka Lash business from the approved site and cannot relocate without Deka Lash's permission. At the approved site, the franchisee must sell only approved products and provide only approved services. Deka Lash does not normally approve relocation unless there is a significant change in economic or other factors affecting the outlet.

If the franchisee loses possession of the location through no fault of their own, they may apply to Deka Lash for approval to relocate to another site in the designated area, assuming a suitable site is available. Deka Lash typically makes a decision on relocation within 14 business days of receiving the required site selection documents. This close control over location is typical in franchise systems to maintain brand consistency and ensure optimal market penetration.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.