What are some examples of non-curable defaults that could lead to termination of the Deka Lash Area Development Agreement?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| | e. Termination by franchisor without cause | Not Applicable | Not Applicable. | | f. Termination by franchisor with cause | 6.2 | We may terminate the Area Development Agreement for cause. |
| Section in | |||
|---|---|---|---|
| Area | |||
| Provision | Developme nt Agreement | Summary | |
| g. | "Cause" defined – curable defaults | 6.2 | We may terminate the Area Development Agreement if you fail to meet your development obligations under the mandatory development Schedule and fail to cure the default within a 30-day cure period. This cure period will only be offered once during the term of your Area Development Agreement. |
| h. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, there are specific instances of non-curable defaults that could lead to the termination of the Area Development Agreement. These include abandonment and insolvency. Additionally, if a Deka Lash area developer fails to meet their development obligations under the Development Schedule for any Development Period, and fails to cure such default within 30 days of receiving notice, this can also result in termination.
Furthermore, the termination of any Franchise Agreement that is entered into in order to fulfill the area developer's obligations under the Area Development Agreement is also considered a non-curable default. This means that if a franchisee operating under the area developer has their franchise agreement terminated, it can trigger the termination of the Area Development Agreement itself.
These terms are important for potential Deka Lash area developers to understand, as they outline the conditions under which their agreement can be terminated, and some of these conditions do not offer an opportunity to correct the issue. It is crucial to adhere to the development schedule and maintain financial stability to avoid these non-curable defaults.