How long does Deka Lash have to exercise its Right of First Refusal after receiving notice from the Deka Lash franchisee?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
reports and other financial information concerning the Franchised Business as you have supplied us hereunder;
- q) In any event, we may withhold or condition our consent to any transfer as we deem appropriate based on the circumstances of the transfer or otherwise; and
- r) You and your owners, members, partners, officers, and directors execute a general release in our favor. The release must be in a form we prescribe, following applicable law, to release us from any claims you may have against us
- 14.6 Right of First Refusal. If you have received and desire to accept a signed, bona fide offer to purchase or otherwise transfer the Franchise Agreement, any interest in it, or substantially all the assets of the Franchised Business, you shall grant us the option (the "Right of First Refusal") to purchase the Franchised Business as provided here:
- a) Within fourteen (14) days of receipt of the offer, you shall offer the Right of First Refusal to us by notice in writing, including a copy of the signed offer to purchase which you received ("Notice"). We shall have the right to purchase the Franchised Business or interest in the Franchised Business at and for the price and upon the terms set out in the Notice, except that we may substitute cash for any non-cash form of payment proposed and we shall have 60 days after the exercise of our Right of First Refusal to close the said purchase. Should we wish to exercise our Right of First Refusal, we will notify you in writing within thirty (30) days from its receipt of the Notice.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, if a franchisee receives a legitimate offer to purchase or transfer their Franchise Agreement, interest in it, or substantially all of the Franchised Business assets, they must first offer Deka Lash the Right of First Refusal.
The franchisee must notify Deka Lash in writing within 14 days of receiving the offer, including a copy of the signed purchase offer. Deka Lash then has 30 days from receipt of this notice to decide whether to exercise its Right of First Refusal.
If Deka Lash chooses to exercise this right, they have 60 days after exercising their Right of First Refusal to close the purchase, substituting cash for any non-cash payment forms proposed in the original offer. If Deka Lash does not exercise its Right of First Refusal, the franchisee has 90 days from the date Deka Lash received the notice to complete the sale, adhering to the conditions outlined in Section 14.5. Failure to conclude the sale within this 90-day period reinstates Deka Lash's Right of First Refusal.