What is the Deka Lash franchisee's obligation regarding relocation of the Franchised Business?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
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 Deka Lash's 2024 Franchise Disclosure Document, franchisees must operate their Franchised Business at a location that Deka Lash has approved, as designated in Section 2 of Schedule 1 of the Franchise Agreement. This approval is based on Deka Lash's site selection criteria found in their Manual. Franchisees are only allowed to operate the Deka Lash business from the approved site.
Relocation of the Franchised Business is generally not approved by Deka Lash unless there is a significant change in economic or other factors affecting the outlet. Deka Lash will also not normally allow franchisees to open additional outlets within their Protected Area. However, if the franchisee loses possession of the location through no fault of their own, or if Deka Lash gives approval, the franchisee can apply to relocate the business to another site in the designated area, provided such a site is available. Deka Lash typically takes 14 business days to approve or disapprove the relocation, following the submission of the required site selection documents.
This means that a Deka Lash franchisee's ability to relocate is heavily dependent on Deka Lash's approval, which is not guaranteed. The franchisee needs to demonstrate a compelling reason for relocation, such as adverse economic changes or loss of possession of the current location. Even then, relocation is contingent on finding an available and suitable site within the designated area and obtaining Deka Lash's approval within the specified timeframe. This process underscores the importance of thorough site selection and lease negotiation at the outset to minimize the need for relocation.