What happens if a Deka Lash franchisee loses possession of the Location through no fault of their own?

According to Deka Lash's 2024 Franchise Disclosure Document, if a franchisee loses possession of their location through no fault of their own, they have the option to apply to Deka Lash for approval to relocate their business to another site within their designated area, assuming a suitable site is available. Deka Lash will then review the relocation request, typically within 14 business days of receiving the necessary site selection documents.

This policy provides a degree of security for Deka Lash franchisees who may face unforeseen circumstances that force them to vacate their original location. However, the relocation is not guaranteed, as it is contingent on Deka Lash's approval and the availability of an alternative site. The FDD states that Deka Lash will not normally approve relocation unless there is a material change in economic or other factors affecting the outlet.

It is important for prospective Deka Lash franchisees to understand the conditions under which relocation will be approved and the potential risks involved if a suitable relocation site cannot be found. Franchisees should also consider the potential costs associated with relocation, such as lease termination fees, moving expenses, and build-out costs for the new location. These costs are not detailed in the FDD, so further inquiry is needed to fully understand the financial implications of relocation.

While the FDD outlines the process for relocation, it does not specify what happens if a suitable site is not available or if Deka Lash disapproves the relocation request. In such cases, the franchisee may be forced to close their business, potentially resulting in significant financial losses. Therefore, it is crucial for prospective franchisees to discuss this scenario with Deka Lash and understand their options in the event that relocation is not possible.