factual

What must a Deka Lash franchisee sign if they renew or transfer their franchise in California?

Deka_Lash Franchise · 2024 FDD

Answer from 2024 FDD Document

YOU MUST SIGN A GENERAL RELEASE OF CLAIM IF YOU RENEW OR TRANSFER YOUR FRANCHISE. CALIFORNIA CORPORATIONS CODE §31512 VOIDS A WAIVER OF YOUR RIGHTS UNDER THE FRANCHISE INVESTMENT LAW (CALIFORNIA CODE §831000 THROUGH 31516). BUSINESS AND PROFESSIONS CODE §20010 VOIDS A WAIVER OF YOUR RIGHTS UNDER THE FRANCHISE RELATIONS ACT (BUSINESS AND PROFESSIONS CODE §820000 THROUGH 20043).

Source: Item 23 — RECEIPT (FDD pages 63–234)

What This Means (2024 FDD)

According to the 2024 Deka Lash Franchise Disclosure Document, a franchisee in California must sign a general release of claim if they renew or transfer their franchise. This requirement is explicitly stated in Item 23, Receipts, which addresses modifications to the disclosure document for California franchisees. This general release likely involves waiving certain rights or claims against Deka Lash, which is a common practice in franchise renewals or transfers.

However, the disclosure also notes that California Corporations Code §31512 voids any waiver of rights under the Franchise Investment Law (California Code §831000 through 31516), and Business and Professions Code §20010 voids any waiver of rights under the Franchise Relations Act (Business and Professions Code §820000 through 20043). This means that while Deka Lash requires a general release, certain statutory rights cannot be waived under California law.

Prospective franchisees in California should carefully review the specific terms of the general release with legal counsel to understand exactly what rights they are waiving and what rights remain protected under California law. This is particularly important given the statement that California law voids certain waivers, indicating a complex legal landscape that requires careful navigation.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.