How long does a Deka Lash franchisee have to discharge a levy of execution before it becomes grounds for termination?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- f) Judgement or Levy of Execution.
You allow the Franchise or Franchise Premises to be seized, taken over, or foreclosed by a creditor, lien-holder, or lessor; let a final judgment against you remain unsatisfied for thirty days (unless a supersedeas or other appeal bond is filed); or allow a levy of execution upon the Franchise or upon any property used in the Franchise that is not discharged by means other than levy within five days of the levy.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, a franchisee has a limited time to resolve a levy of execution before Deka Lash can terminate the franchise agreement. Specifically, if a franchisee allows a levy of execution upon the franchise or any property used in the franchise, they have only five days to discharge it by means other than the levy itself.
This means a Deka Lash franchisee must act quickly to address any such legal actions. Failure to resolve the levy within the five-day period grants Deka Lash the right to terminate the agreement. This could involve settling the debt, negotiating with creditors, or taking other legal steps to remove the levy.
The short timeframe underscores the importance of maintaining sound financial management and addressing legal issues promptly. It also highlights the potential risk a franchisee faces if they encounter financial difficulties leading to judgments and levies. Franchisees should ensure they have contingency plans and access to legal and financial advice to manage such situations effectively.
Many franchise agreements include clauses that allow the franchisor to terminate the agreement if the franchisee encounters financial or legal troubles that could harm the brand's reputation or the business's viability. The five-day period provided by Deka Lash is relatively short, indicating a strong emphasis on immediate compliance and financial stability.