Is the grant of a Deka Lash franchise subject to any specific terms and conditions?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, DL Franchising, LLC d/b/a Deka Lash ("Deka Lash," "we," "us," or "our") offers a franchise program to operate studios which offer eyelash extension, eyebrow, and skincare services and related products ("System"). Our system utilizes specified marketing techniques and operating procedures; and
WHEREAS, Franchisee and all Signators identified on the signature page to this Agreement, in your personal capacity, (collectively "Franchisee," "you," or "your") desire to utilize our System and our trade names, service marks, and trademarks (collectively, the "Marks"); and
NOW, THEREFORE, for value received, Deka Lash and Franchisee ("the Parties") agree as follows:
1. GRANT OF FRANCHISE
Subject to the terms of this franchise agreement ("Agreement" or "Franchise Agreement"), we grant to you a Deka Lash franchise ("Franchised Business") using our system and our Marks in the protected area described in Schedule 1 ("Protected Area"). You agree to abide by the terms of this Agreement.
2. TERM AND RENEWAL
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the grant of a Deka Lash franchise is subject to several terms and conditions. The franchise agreement grants the franchisee the right to operate a Deka Lash franchise using Deka Lash's system and marks within a protected area, contingent upon the franchisee's adherence to the agreement's terms.
Several factors can affect the continuation of the franchise. For instance, if the franchisee, acting as a developer, fails to meet the development schedule or becomes insolvent, Deka Lash has the right to terminate the agreement. Additionally, Deka Lash requires franchisees to assign all listings associated with the Deka Lash franchise, including telephone numbers, internet listings, and social media accounts, to Deka Lash upon the expiration or termination of the franchise agreement.
Moreover, the rights granted to the franchisee are non-exclusive, with Deka Lash reserving all other rights not expressly granted to the franchisee. The franchisee's rights under the agreement are personal and cannot be sold, transferred, or assigned without Deka Lash's consent, although there is an exception for assignment to a corporation or LLC wholly owned by the franchisee under the same terms and conditions as the initial agreement. Franchisees must also acknowledge their understanding and acceptance of the franchise agreement's terms and conditions, confirming they are not relying on any representations outside the Franchise Disclosure Document.
At the end of the initial term, a Deka Lash franchisee has the option to renew the franchise for another term if they are in good standing, have met all their financial obligations, provide timely notice of their intent to renew, execute a general release, and execute the then-current franchise agreement. As part of the renewal, the franchisee must also pay a renewal fee of $3,500 and complete any required retraining programs. The terms of the renewed franchise agreement, including royalty fees and brand development fund fees, may differ materially from the original agreement.