Is Deka Lash liable for the consequences of a franchisee's choice of site?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.1 Location for Franchise Premises. You will operate your Franchised Business at the Franchise Location that we have approved as designated in Section 2 of the Schedule 1 of this Franchise Agreement.
We base approval on our site selection criteria in our Manual.
You must operate the Franchised Business only from the site we approve.
- 3.2 Permitted Uses. You may operate the Franchised Business only at the approved site and may not relocate without our approval.
You must sell approved products and provide approved services only at the Deka Lash studio you operate under a Franchise Agreement with us.
- 3.3 Relocation of the Franchised Business.
We will not normally approve the relocation of the Franchised Business unless there is a material change in economic or other factors affecting your outlet.
We will not normally allow you to open additional outlets within your Protected Area.
If you lose possession of the Location through no fault of your own, or if we give our approval, you may apply to us for our approval to relocate your business to another site in the designated area, provided such a site is available.
We will approve or disapprove the relocation of your outlet, typically within 14 business days of your submission of the required site selection documents required by us.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
The 2024 Deka Lash Franchise Disclosure Document states that franchisees must operate their Franchised Business at a location that Deka Lash approves, based on the site selection criteria in their manual. Franchisees must operate the Franchised Business only from the approved site and may not relocate without Deka Lash's approval.
Normally, Deka Lash will not approve relocation unless there is a material change in economic or other factors affecting the outlet. If a franchisee loses possession of the location through no fault of their own, or if Deka Lash gives approval, the franchisee may apply to relocate to another site in the designated area, provided such a site is available. Deka Lash will typically approve or disapprove the relocation of the outlet within 14 business days of the franchisee's submission of the required site selection documents.
While Deka Lash outlines the approval process and conditions for site selection and relocation, the FDD does not explicitly state whether Deka Lash is liable for consequences resulting from a franchisee's site choice. A prospective franchisee should seek clarification from Deka Lash regarding liability related to site selection.