What is the initial term length of the Deka Lash Development Agreement?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.1 Term. This Agreement will commence as of the date it is fully executed and, unless earlier terminated by us, will end on the earlier of a) the last day of the calendar month that the final Franchised Business is required to be opened and operating under the Development Schedule or b) the date you execute a lease for the final Franchised Business required to be opened and operating under the Development Schedule. Upon expiration or termination of this Agreement for any reason, you will not have any rights within the Development Area other than the territorial rights granted in the franchise agreement executed in connection with any Franchised Businesses that you have opened and commenced operating as of the date this Agreement is terminated or expires.
Deka Lash reserves the right to revise the above options at any time.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the Development Agreement's term begins when it is executed and ends on the earlier of two conditions: either the last day of the calendar month when the final Franchised Business is required to open per the Development Schedule, or the date a lease is executed for the final Franchised Business required to be opened under the Development Schedule.
This means the length of the Development Agreement is tied directly to the franchisee's ability to meet the development schedule outlined in the agreement. The term could be shorter if the franchisee secures a lease for the final location ahead of schedule. Conversely, any delays in meeting the development schedule could potentially lead to termination of the agreement, as detailed elsewhere in the FDD.
Upon the Development Agreement's expiration or termination, the franchisee retains only the territorial rights specified in the franchise agreements for the Deka Lash studios they have already opened and are operating. They lose any rights to develop further units within the Development Area, emphasizing the importance of adhering to the development schedule to maintain expansion rights. Deka Lash also retains the right to revise the development options at any time.