If a Deka Lash franchisee transfers their franchise, must they comply with post-termination provisions?

According to Deka Lash's 2024 Franchise Disclosure Document, a franchisee who transfers their franchise agreement must comply with post-termination provisions. This requirement is part of the conditions that Deka Lash places on the transfer of a franchise.

Specifically, the franchisee must execute any transfer, amendment, or release forms required by Deka Lash, provide a copy of the proposed transfer documents to Deka Lash, and comply with the post-termination provisions outlined in the franchise agreement. Additionally, the franchisee must request that Deka Lash provide the prospective transferee with the current franchise disclosure document. The franchisee is also responsible for paying the transfer fee and the prospect generation fee, if applicable.

This means that even when a Deka Lash franchisee sells their business to a new owner, they are still bound by certain restrictions that typically apply after the franchise agreement ends. These post-termination provisions often include non-compete clauses, which prevent the former franchisee from opening a competing business within a specified area for a certain period.

Compliance with these provisions is a condition of the transfer, ensuring that Deka Lash's interests are protected even after the original franchisee exits the system. Prospective franchisees should carefully review the post-termination provisions in the franchise agreement to understand their obligations both during and after their involvement with the Deka Lash franchise.