What happens if a Deka Lash franchisee discontinues operation of their Deka Lash business in the Premises?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
ly with this Agreement. The determination of satisfactory compliance will be within our exclusive discretion in good faith. If we refuse to renew, you must continue to perform under this Agreement until its expiration.
c. You have no automatic right to continue operation of the Franchise following expiration or termination of this Agreement. If you continue to operate the Franchise with our express consent, following the expiration or termination of this Agreement, the continuation will be a month-to-month extension of this Agreement. This Agreement will then be terminable by either party upon 30 days written notice. Otherwise, all provisions of this Agreement will apply while operations continue.
3. PROTECTED AREA
- 3.1 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 of this 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.
- 3.2 Permitted Uses. You may operate the Franchised Business only at the approved 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.
- 3.3 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.
- 3.4 Protected Area/Exclusive Territory. There will be a "Protected Area" around your Franchised Business as defined in Schedule 1, Section 3. The area or population included in each Protected Area will vary. The Protected Area is generally a 1.5-mile radius.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
Based on the 2024 Deka Lash Franchise Disclosure Document, a franchisee must operate their Franchised Business at the location that Deka Lash approves. The franchisee may not relocate without Deka Lash's approval. Deka Lash will not normally approve relocation unless there is a material change in economic or other factors affecting the outlet. If a franchisee loses possession of the location through no fault of their own, or if Deka Lash gives approval, the franchisee may apply to relocate the business to another site in the designated area, provided such a site is available. Deka Lash will typically approve or disapprove the relocation of the outlet within 14 business days of the franchisee submitting the required site selection documents.
If a Deka Lash franchisee ceases to actively engage in development activities in the Development Area or otherwise abandons its development business for three consecutive months, or any shorter period that indicates an intent to discontinue development of the Franchised Businesses within the Development Area, Deka Lash has the right to terminate the agreement.
Additionally, as a condition to signing the Franchise Agreement(s), the franchisee irrevocably assigns to Deka Lash all listings associated with the Deka Lash franchise, including all telephone numbers, telephone listings, email addresses, domain names, social media accounts, Internet listings, websites, and comparable electronic identities used in connection with the Marks or the operation of the Franchised Business covered by the Agreement, whether now-existing or adopted by Franchisee in the future, upon the expiration or termination of any of the Franchise Agreements.
If the Franchise Agreement is terminated, the franchisee has no automatic right to continue operation of the Franchise. If the franchisee continues to operate the Franchise with Deka Lash's express consent, following the expiration or termination of the Agreement, the continuation will be a month-to-month extension of the Agreement, terminable by either party upon 30 days written notice. Otherwise, all provisions of the Agreement will apply while operations continue.