How many days does Deka Lash have to exercise its Right of First Refusal?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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. Upon the giving of such notice by us, there shall immediately arise between us and you, or its owners, a binding contract of purchase and sale at the price and upon the terms contained in 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 their franchise, 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 the receipt of the franchisee's notice to decide whether to exercise its Right of First Refusal. If Deka Lash decides to exercise this right, they must notify the franchisee in writing within that 30-day period.
Upon Deka Lash's notification of intent to purchase, a binding contract is immediately formed between Deka Lash and the franchisee. Deka Lash then has 60 days after exercising its Right of First Refusal to finalize the purchase, with the option to substitute cash for any non-cash payment forms proposed in the original offer.