If Deka Lash refuses to renew a franchise agreement, what obligations does the franchisee have?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
As a condition to signing the Franchise Agreement(s), we have required that you assign all of your Listings relating to the Deka Lash Franchise(s) to us upon the expiration or termination of any of the Franchise Agreements.
Franchisee agrees to update us as soon as possible of any listings adopted by Franchisee. Franchisee agrees to pay all amounts pertaining to the use of the Listings incurred by it when due. Upon expiration or termination of the Agreement for any reason, Franchisee's right of use of the Listings shall terminate. In the event of termination or expiration of the Agreement, Franchisee agrees to pay all amounts owed in connection with the Listings, including all sums owed under existing contracts for telephone directory advertising and to immediately at Franchisor's request, (i) take any other action as may be necessary to transfer the Listings and numbers to Franchisor or Franchisor's designated agent, (ii) install and maintain, at Franchisee's sole expense, an intercept message, in a form and manner acceptable to Franchisor on any or all of the Listings; (iii) disconnect the Listings; and/or (iv) cooperate with Franchisor or its designated agent in the removal or relisting of any telephone directory or directory assistance listing, Internet directory, website or advertising, whether published or online.
Franchisee agrees that Franchisor may require that all telephone numbers and telephone and internet equipment and service must be owned or provided by Franchisor or a supplier approved by Franchisor and that Franchisor has the right to require Franchisee to "port" or transfer to Franchisor or an approved call routing and tracking vendor all phone numbers associated with the Franchised Business or published in any print or online directory, advertisement, marketing or promotion associated with the Marks.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
The 2024 Deka Lash Franchise Disclosure Document outlines specific obligations a franchisee must fulfill if the franchise agreement expires or is terminated. A key requirement is the assignment of all listings associated with the Deka Lash franchise to the franchisor. These listings encompass telephone numbers, email addresses, domain names, social media accounts, internet listings, websites, and other comparable electronic identities used in connection with the Deka Lash brand. This assignment is required as a condition of signing the Franchise Agreement.
Upon expiration or termination of the agreement, the franchisee's right to use these listings immediately ceases. The franchisee is responsible for settling all outstanding amounts related to the listings, including any debts under existing contracts for telephone directory advertising. Furthermore, at Deka Lash's request, the franchisee must take necessary actions to transfer the listings and numbers to Deka Lash or its designated agent. This may involve installing an intercept message on the listings, disconnecting the listings, or cooperating in the removal or relisting of any directory or advertising.
Deka Lash retains the right to mandate that all telephone numbers and related equipment be owned or provided by Deka Lash or an approved supplier. They can also require the franchisee to transfer all phone numbers associated with the franchised business to Deka Lash or an approved vendor. These measures ensure that Deka Lash maintains control over its brand identity and customer communications even after a franchise agreement ends. This is a fairly standard practice in franchising, as it protects the brand's presence and reputation.
These obligations are designed to ensure a smooth transition and prevent any disruption to Deka Lash's operations or brand image. Franchisees should be aware of these requirements and plan accordingly to avoid any potential disputes or additional costs upon the termination or expiration of their franchise agreement.