When does the Deka Lash Development Agreement terminate if not earlier terminated by the franchisor?

According to the 2024 Deka Lash Franchise Disclosure Document, the Development Agreement will commence on the date it is fully executed. Unless terminated earlier by Deka Lash, the agreement will end on the earlier of two conditions. The first condition is the last day of the calendar month that the final Franchised Business is required to be opened and operating under the Development Schedule. The second condition is the date the developer executes a lease for the final Franchised Business required to be opened and operating under the Development Schedule.

It is important to note that upon expiration or termination of the Development Agreement, the developer will not have any rights within the Development Area other than the territorial rights granted in the franchise agreement executed in connection with any Franchised Businesses that have been opened and commenced operating as of the date the Development Agreement is terminated or expires. This means that the developer's rights are limited to the already operational franchises and do not extend to further development in the area.

Additionally, Deka Lash retains specific termination rights under the Development Agreement. These include instances where the developer ceases active engagement in development activities, becomes insolvent, fails to meet the development schedule, or if any associated Franchise Agreement is terminated. These termination rights provide Deka Lash with mechanisms to ensure the developer adheres to the agreed-upon development plan and maintains financial stability. Understanding these termination conditions is crucial for any prospective developer to assess the risks and obligations associated with the Development Agreement.