Does a felony conviction automatically lead to termination of the Deka Lash franchise agreement?

According to the 2024 Deka Lash Franchise Disclosure Document, a felony conviction does not automatically lead to the termination of the franchise agreement. Deka Lash can terminate the franchise agreement if the franchisee is convicted of a felony or any other criminal misconduct which is relevant to the operation of the franchise.

This means that Deka Lash has the right to terminate the agreement if a franchisee is convicted of a felony, but the conviction must be relevant to the operation of the franchise. The FDD does not define what constitutes a relevant crime, so it would likely be up to Deka Lash to make a reasonable determination.

This clause protects Deka Lash from potential damage to its brand and reputation that could arise from a franchisee's criminal behavior. It also ensures that franchisees meet a certain standard of ethical and legal conduct, which is important for maintaining the integrity of the Deka Lash brand. A prospective franchisee should seek clarification from Deka Lash regarding what specific types of criminal misconduct would be considered relevant to the operation of the franchise and lead to termination.