What is the Development Schedule for opening new Deka Lash Franchised Businesses, including the expiration dates and the number of businesses to be opened in each development period?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Developmen t Period | Expiration Date | Number of New Franchised Businesses | Cumulative Number of Franchised Businesses |
|---|---|---|---|
| Developer Must Open in Development Area | Developer Must Have Open Within Development Area | ||
| 12 | • | • | |
| First | Months from Effective Date 24 | ||
| Second | Months from Effective Date 36 | ||
| Third | Months from Effective Date 48 | ||
| Fourth | Months from Effective Date 60 | ||
| Fifth | Months from Effective Date |
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the specific details of the development schedule, including expiration dates and the number of new franchised businesses to be opened, are outlined in the Developer Data Sheet. This sheet is attached to and incorporated into the Area Development Agreement. The FDD mentions that the Developer Data Sheet includes the development schedule, specifying the number of new Deka Lash franchised businesses the developer must open within a defined Development Area, as well as the cumulative number of businesses that must be open by the end of each Development Period.
Each Development Period has an expiration date, and the developer is obligated to meet the minimum requirements for opening new locations within these periods. Failure to meet these obligations can lead to penalties, including the assessment of a Delayed Opening Fee of $500 per month for each studio behind schedule. This fee can be paid for up to 12 months, potentially extending the development schedule by one month for each month the fee is paid. However, failure to pay the delayed opening fee or meet other obligations can result in the loss of protected territory rights and termination of the development agreement.
The Area Development Agreement's term continues until the last day of the calendar month when the final franchised business is required to be opened, or when the lease is executed for the final franchised business. Deka Lash requires the developer to sign their current form of Franchise Agreement for the first Franchised Business when the Area Development Agreement is executed. For each additional Franchised Business, the developer must enter into the then-current form of the Franchise Agreement to meet the development obligations under the Development Schedule.
Prospective Deka Lash franchisees considering an Area Development Agreement should carefully review the Developer Data Sheet to fully understand the development schedule, including the number of units required and the associated deadlines. They should also be aware of the potential financial implications of failing to meet these obligations, as well as the conditions under which the development agreement can be terminated. Understanding these requirements is crucial for successfully developing multiple Deka Lash franchises within the designated area.