What is the Deka Lash franchisee's obligation regarding operating the Franchised Business?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
y us. You are responsible for all costs you or your employees incur to attend such training, including training fees, travel, lodging, meals, and wages.
ITEM 12 TERRITORY
Location for Franchise Premises. You will operate your Franchised Business at the Franchise Location that we have approved as designated in Section 2 of the Schedule 1 to the Franchise Agreement. We base approval on our site selection criteria in our Manual. You must operate the Franchised Business only from the site we approve.
Permitted Uses. You may operate the Franchised Business only at the accepted site and may not relocate without our approval. You must sell approved products and provide approved services only at the Deka Lash studio you operate under a Franchise Agreement with us.
Relocation of the Franchised Business. We will not normally approve the relocation of the Franchised Business unless there is a material change in economic or other factors affecting your outlet. We will not normally allow you to open additional outlets within your Protected Area. If you lose possession of the Location through no fault of your own, or if we give our approval, you may apply to us for our approval to relocate your business to another site in the designated area, provided such a site is available. We will approve or disapprove the relocation of your outlet, typically within 14 business days of your submission of the required site selection documents required by us.
Source: Item 12 — TERRITORY (FDD pages 40–44)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, franchisees must operate their Franchised Business at the location approved by Deka Lash, as specified in the Franchise Agreement. This location is determined based on Deka Lash's site selection criteria outlined in their Manual. Franchisees are restricted to operating solely from this approved site.
Specifically, Deka Lash franchisees are only allowed to sell approved products and provide approved services at the designated Deka Lash studio. Relocation of the Franchised Business is generally not permitted unless there are significant changes in economic or other relevant factors, or if the franchisee loses possession of the location without fault. Any relocation requires Deka Lash's approval, which typically takes about 14 business days after submitting the necessary site selection documents.
After two years from the Franchise Agreement's effective date, Deka Lash requires a minimum Gross Revenue of $15,000 per month or a minimum of 75 members in their membership program. Failure to meet this sales volume may result in the termination of the Franchise Agreement. Franchisees are also obligated to focus their advertising primarily within their territory, and all marketing and advertising efforts, including online activities, must receive prior written approval from Deka Lash for each occurrence. The lease signed by the franchisee must be for a minimum of 5 years, with optional extension periods.