What documents might Deka Lash require to evidence a transfer of the franchised business?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 14.5 Conditions for Approval of Transfer. We may condition our approval of any proposed sale or transfer of the franchised business or of your interest in this Agreement upon satisfaction of the following occurrences:
- a) You are current in all monetary obligations to us, our affiliates, and our designated/approved suppliers and vendors;
- b) You are in full compliance with this Agreement;
- c) You execute any transfer, amendment, or release forms that we may require;
- d) You or the transferee will provide to us a copy of the proposed documents as we may request to evidence the transfer;
For a transfer under Section 14.2 above, the following conditions also apply:
- e) The transferee must be approved by us and demonstrate to our satisfaction that s/he meets our educational, managerial and business standards; possesses a good moral character, business reputation and credit rating; has the aptitude and ability to conduct the business to be transferred; and has adequate financial resources and capital to meet the performance obligations under this Agreement;
- f) The transferee must execute our then-current Franchise Agreement;
- g) You or the transferee must pay to us the Transfer Fee specified in Section 4 above;
- h) The transferee must satisfactorily complete our initial training program at the transferee's expense within the time frame we establish;
- i) You must comply with the post-termination provisions of this Agreement;
- j) The transferee must obtain within the time limits set by us and maintain thereafter, all permits and licenses required for operation of the Franchised Business;
- k) To the extent required by the terms of any leases or other agreements, the lessors or other parties must have consented to the proposed transfer;
- I) The transfer must be made in compliance with any laws that apply to the transfer, including state and federal laws governing the offer and sale of franchises;
- m) The purchase price and terms of the proposed transfer are not so burdensome to the prospective transferee as to impair or materially threaten its future operation and performance under its franchise agreement;
- n) You must request that we provide the prospective transferee with our current franchise disclosure document:
- o) Our approval of the transfer will not constitute a waiver of any claims we may have against the transferring party;
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the company may require specific documentation to evidence the transfer of a franchised business. As a condition for approving the sale or transfer of a Deka Lash franchise, the franchisee or the prospective transferee must provide copies of proposed documents that Deka Lash requests.
Beyond providing documentation, several other conditions must be met for Deka Lash to approve a transfer. The franchisee must be current on all monetary obligations to Deka Lash, its affiliates, and approved suppliers and vendors, and must be in full compliance with the Franchise Agreement. The transferee must meet Deka Lash's standards for education, managerial and business acumen, moral character, business reputation, and credit rating. The transferee must also demonstrate the aptitude, ability, and adequate financial resources to operate the Deka Lash business.
Additional requirements include the transferee executing the then-current Franchise Agreement and completing the initial training program at their own expense. The franchisee or transferee must also pay the transfer fee outlined in Section 4 of the agreement. Compliance with post-termination provisions, obtaining necessary permits and licenses, and ensuring that lessors or other parties consent to the transfer are also necessary. The transfer must comply with all applicable laws, and the purchase price and terms must not impair the transferee's future operation and performance. Finally, Deka Lash's approval of the transfer does not waive any claims they may have against the transferring party.