What does the Development Schedule in the Deka Lash Area Development Agreement specify?

According to Deka Lash's 2024 Franchise Disclosure Document, the Area Development Agreement includes a Development Schedule that specifies the number of Franchised Businesses the developer must open and the time frames for opening them. The size of the Development Area depends on the number of Franchised Businesses the developer is required to open.

It is important to note that while Deka Lash grants an exclusive territory, this does not guarantee the ability to open a Franchised Business anywhere within that Development Area. Overlapping protective radii from other franchisees can restrict locations. Deka Lash will inform developers of any existing studios with protective radii overlapping into their Development Area before the agreement is executed but does not guarantee that future franchisees won't choose locations that create overlapping radii.

Failure to meet the Development Schedule can result in the loss of rights to the undeveloped portion of the development area. However, the territorial exclusivity is not dependent upon meeting the development schedule, achievement of a certain sales volume, market penetration or any other contingency. If the developer is current on their obligations, compliant with agreements, and showing a good faith effort to secure and open the next scheduled studio, they may be eligible for a one-time, six-month extension to their development schedule without a Delayed Opening Fee, provided they execute a general release in Deka Lash's favor. This extension delays all subsequent development dates by 6 months and can only be used once during the development agreement.

For each month a developer is behind schedule (excluding the Extension with Release), Deka Lash will charge a Delayed Opening Fee of $500 for each territory when that territory is due. Payment of this fee extends the development schedule for each unit right by one month, and Deka Lash allows payment of this fee for up to 12 months. Failure to pay the delayed opening fee, stopping or refuting the ACH transaction, notifying Deka Lash in writing of the desire to stop being charged the fees, or exceeding 12 months of payments will result in the immediate loss of protected territory rights and transferability rights. Deka Lash also retains all rights to approve the studio location(s).