How long can a Deka Lash developer cease actively engaging in development activities before the agreement can be terminated?

According to Deka Lash's 2024 Franchise Disclosure Document, a developer can have their development agreement terminated if they cease actively engaging in development activities for a specific period. Specifically, Deka Lash can terminate the agreement if the developer ceases to actively engage in development activities in the Development Area or otherwise abandons its development business for three consecutive months.

However, Deka Lash can also terminate the agreement if the period is shorter than three months, provided that the shorter period indicates an intent by the developer to discontinue development of the Franchised Businesses within the Development Area. This clause provides Deka Lash with some discretion to act if they believe the developer is no longer committed to the development schedule, even if the full three months have not elapsed.

This provision is important for prospective Deka Lash developers to understand, as it highlights the need to remain actively engaged in the development process to avoid potential termination of the agreement. It is crucial to maintain consistent communication with Deka Lash and demonstrate ongoing efforts to meet the development schedule to mitigate the risk of termination based on perceived abandonment of the development business.