What happens if a Deka Lash tenant does not renew the Franchise Agreement?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
of Financial Institutions 201 West Washington Avenue, 3rd Floor
Madison, WI 53703
EXHIBIT F-1 FRANCHISOR ADDENDUM; CONDITIONAL ASSIGNMENT OF LEASE
THIS FRANCHISOR ADDENDUM AND CONDITIONAL ASSIGNMENT OF LEASE ("Agreement") is made a part of that certain Lease to which it is attached and is dated of even date therewith. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Lease.
WHEREAS, as a condition to the grant of rights under the Franchise Agreement to Tenant, Franchisor requires that Tenant and Landlord enter into this Agreement by their attachment to the Lease to which it is attached.
NOW, THEREFORE, for and in consideration of the execution of the Lease by Landlord and Tenant and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows:
- I. Tenant assigns all of its right, title and interest in and to the Lease and the Premises to Franchisor, effective automatically without further action of Tenant upon notice from Franchisor to Landlord. Although it is the intention of the parties that this Agreement may be effective as a present assignment, it is expressly understood and agreed that until an event described below has occurred and Franchisor has exercised its remedies, Landlord shall look to Tenant for full performance of Tenant's obligations under the Lease. In no event shall Franchisor have any liability, duty, or obligation to Landlord under the Lease or otherwise without Franchisor's written consent in its sole discretion.
- II. With the exception of Sections III, IV, VIII, IX below which are effective as of the date this Agreement is fully executed by the parties, the assignment of Lease contemplated hereunder is conditional and shall not be effective until the "Effective Date," as defined in Section 5 of this Agreement. Franchisor shall have no right to assume the Lease unless and until:
- a. Default by Ten
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, if a Deka Lash tenant does not renew the Franchise Agreement, Deka Lash has the right to take over the lease.
Specifically, the tenant assigns all rights, titles, and interests in the lease and premises to Deka Lash. This assignment becomes effective automatically upon notice from Deka Lash to the landlord, without requiring any further action from the tenant.
However, until certain events occur and Deka Lash exercises its remedies, the landlord will continue to look to the tenant for full performance of the tenant's obligations under the lease. Deka Lash will not have any liability, duty, or obligation to the landlord under the lease unless Deka Lash provides written consent. The assignment of the lease is conditional and only becomes effective under specific circumstances, including the nonrenewal of the Franchise Agreement by the tenant.