What are the Deka Lash franchisee's obligations regarding insurance coverage (Item 9) and how does this relate to the restrictions on permitted uses of the franchise premises (Item 12)?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
rain your employees to competently and professionally carry out their duties and offer excellent customer service. You shall ensure that your employees have any training, licenses, or certifications required by applicable law. You are solely responsible for hiring, firing, compensating, paying applicable payroll taxes and day-to-day supervision and control over your employees.
- 6.8 Insurance. You are required to have insurance as may be required by your state laws and as we may specify in the Operations Manual. You must name DL Franchising, LLC and our respective affiliates, officers, directors, members and agents and others as their interest may appear on a primary, noncontributory basis as an additional insured on these policies and send proof of same to us. Certificates of insurance must be sent in upon the annual expiration date. If
you suffer a loss to your franchise, such as fire or theft, you are required to use the insurance proceeds to replace or repair the premises or property damaged or lost.
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees are obligated to maintain insurance coverage as required by state laws and as specified by Deka Lash in its Operations Manual. This insurance must include DL Franchising, LLC, its affiliates, officers, directors, members, and agents as additional insured parties on a primary, noncontributory basis. Franchisees must provide proof of this insurance to Deka Lash and submit certificates of insurance upon the annual expiration date. If a franchisee experiences a loss, such as fire or theft, they are required to use the insurance proceeds to repair or replace the damaged premises or property. This obligation is detailed in Section 6.8 of the franchise agreement and referenced in Item 9 of the FDD.
Item 12 of the Deka Lash FDD outlines the restrictions on the permitted uses of the franchise premises. Franchisees must operate their Deka Lash studio only at the location approved by Deka Lash and cannot relocate without approval. They are only allowed to sell approved products and services at the approved location. This restriction ensures that the franchisee operates within the defined scope of the Deka Lash system and maintains the brand's standards.
The insurance requirement in Item 9 is directly related to the restrictions on permitted uses in Item 12 because it ensures that the Deka Lash business is protected against potential losses or damages that may occur at the approved location. By requiring franchisees to maintain adequate insurance and use the proceeds for repair or replacement, Deka Lash aims to preserve the integrity and operational continuity of the franchise. This also protects Deka Lash's brand and reputation by ensuring that each franchise location adheres to the brand's standards and continues to offer services in a consistent manner, even after an unforeseen event.