What information must a Deka Lash franchisee provide to Deka Lash when transferring interest to a Controlled Entity?

According to the 2024 Deka Lash Franchise Disclosure Document, a "Controlled Entity" is defined as an entity where the franchisee is the beneficial owner of 100% of each class of voting ownership interest. If a Deka Lash franchisee desires to transfer interest to a Controlled Entity, they must provide written notification to Deka Lash. This notification must include the name of the Controlled Entity, as well as the name and address of each officer, director, shareholder, member, partner, or similar person, along with their respective ownership interest.

Notably, Deka Lash does not charge a transfer fee for transferring interest to a Controlled Entity. This can be a significant benefit for franchisees looking to structure their business operations without incurring additional costs. This type of transfer does not trigger the Right of First Refusal, which Deka Lash might otherwise exercise.

It is important for prospective Deka Lash franchisees to understand these requirements and ensure they comply with all notification procedures when considering such a transfer. Providing complete and accurate information is crucial for a smooth transfer process and to maintain a good relationship with Deka Lash. Franchisees should consult with legal and financial advisors to ensure they fully understand the implications of transferring interest to a Controlled Entity.