What happens in the event of the death or incapacity of a Deka Lash franchisee who is an individual?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
15. DEATH OR INCAPACITY
The following will apply in case of your death or incapacity if you are an individual, or of any general partner of you if you are a partnership, or of any member or shareholder owning 50 percent or more of you if you are a limited liability company or corporation or other legal entity. We are entitled to reimbursement from you or your estate for any reasonable expenses incurred continuing services from the date of your death or incapacity until transfer or termination. The term "incapacity" means a condition that prevents you from reasonably carrying out your duties under this Agreement. Within ninety days of the event, the heirs, beneficiaries, devisees or legal representatives of that individual, partner, member or shareholder will complete one of the following:
a) Assume and Continue Operations. Apply to us for the right to continue to operate the Franchise for the duration of the term of this Agreement. The right to continue will be granted upon the fulfillment of all of the conditions set forth in this section (except that no Transfer Fee will be required). If a proper and timely application for the right to continue
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, specific procedures are in place regarding the death or incapacity of a franchisee who is an individual. Incapacity is defined as a condition that prevents the franchisee from reasonably fulfilling their duties under the Franchise Agreement.
In the event of death or incapacity, Deka Lash is entitled to reimbursement from the franchisee's estate for reasonable expenses incurred to continue services until the franchise is either transferred or terminated. Within 90 days of the event, the heirs, beneficiaries, devisees, or legal representatives must take action.
The representatives have the option to apply to Deka Lash for the right to continue operating the franchise for the remainder of the agreement's term. If the application is approved, the right to continue will be granted, and a transfer fee will not be required.
This provision ensures that in unfortunate circumstances, there is a clear process for managing the Deka Lash franchise, protecting both the interests of the franchisee's estate and the continuity of the Deka Lash business. It is important for prospective franchisees to understand these terms and discuss them with legal and financial advisors.