What is the 'Development Schedule' for Deka Lash franchises defined as?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, we grant qualified third parties the right to develop a certain number of Franchised Businesses within a defined geographical area (the "Development Area") in accordance with a mandatory development schedule that must be strictly adhered to, with each Franchised Business within the Development Area being opened and operated utilizing the Marks and System pursuant to the terms and conditions set forth in our then-current form of franchise agreement (each, a "Franchise Agreement").
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the Development Schedule is a mandatory schedule that a franchisee must strictly adhere to when developing Franchised Businesses within a defined geographical area. This schedule dictates the timeline within which each Deka Lash studio within the Development Area must be opened and operated.
Failure to meet the obligations outlined in the Development Schedule can lead to significant consequences for the franchisee. If the franchisee fails to meet the schedule for any Development Period and does not rectify the situation within 30 days of receiving notice, Deka Lash has grounds to terminate the agreement. Additionally, if any individual Franchise Agreement entered into to fulfill the Development Schedule is terminated, it can trigger termination of the overall Development Agreement.
Upon termination of the Development Agreement, Deka Lash retains the right to establish or license others to establish Deka Lash units within the previously reserved Development Area without any restrictions. The franchisee's right to open and operate any remaining franchises that have not yet opened for business is revoked. This means the franchisee loses the right to develop further Deka Lash units in the area, except for those already operating under an existing Franchise Agreement in good standing. Deka Lash also charges a Delayed Opening Fee of $500 per month for each studio when that studio becomes due if the franchisee is behind on their Development Schedule.
Prospective franchisees should carefully review the Development Schedule outlined in the Development Agreement and assess their ability to meet the specified timelines. Understanding the implications of failing to adhere to the schedule is crucial before entering into the agreement, as it can result in the loss of development rights and the potential termination of the agreement.