Must a Deka Lash franchisee execute a general release as a condition of franchise renewal?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
you accept from us, the Franchise, license, and privilege to use the Marks, the System, and marketing materials bearing the Marks, for 10 years from the "Effective Date" of this Agreement, as designated on the signature page to this Agreement.
- 2.2 Renewal of Franchise. If you are not in breach of this Agreement, and if you meet the following conditions, and if we are still offering franchises in your geographic area at the time, you may renew the Franchise under the terms of our then-current Franchise Agreement: You must:
- a. Be in good standing and full compliance.
- b. Have satisfied all monetary obligations.
- c. Give notice at least 3 months and not more than 6 months before the end of the Franchise term established by this Agreement.
- d. Execute a general release, in a form we prescribe, following applicable law, to release us from any claims you may have against us.
- e. Execute our then-current Franchise Agreement within 30 days after it is delivered to you. If you do not, we may conclude that you do
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a franchisee must execute a general release to renew their franchise agreement. To be eligible for renewal, the franchisee must be in good standing and in full compliance with the agreement, have met all monetary obligations, and provide notice of intent to renew at least 3 months but not more than 6 months before the end of the franchise term.
In addition to the general release, the franchisee must execute Deka Lash's then-current Franchise Agreement within 30 days of receiving it, potentially with materially different terms than the original contract. They must also pay a renewal fee of $3,500 and successfully complete any required retraining programs at their own expense.
The general release requires the franchisee to release Deka Lash from any claims they may have against them. This is a fairly standard practice in franchising, as it resolves any potential disputes before entering into a new agreement. However, franchisees should carefully review the release and understand its implications before signing, as it could prevent them from pursuing legal action against Deka Lash for issues that occurred during the initial franchise term.