How many Deka Lash Franchised Businesses will the Developer be required to open?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Developer must ensure that, at a minimum, Developer will:
- a) Open and commence operations of a minimum of (i) 20% of the number of Franchised Businesses allowed under this Area Development Agreement each year or (ii) one Franchised Business per year, whichever is greater;
- b) Open and commence operations of the required number of new Franchised Businesses during each specified development period set forth in the Development Schedule described in the attached Developer Data Sheet, the terms of which are herein incorporated into this Ag
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, a Developer must open and commence operations of a minimum of either 20% of the total number of Franchised Businesses allowed under the Area Development Agreement each year, or at least one Franchised Business per year, whichever is greater. The specific number of Franchised Businesses required during each development period is detailed in the Development Schedule, which is included in the Developer Data Sheet.
This means that a Deka Lash Developer's obligations are tied to a specific development schedule outlined in their agreement. The minimum requirement ensures consistent growth within the designated area. The Developer Data Sheet, which contains the Development Schedule, is a critical document for understanding the pace and scale of expansion expected by Deka Lash.
Failure to meet these development obligations can lead to termination of the agreement if the default is not cured within 30 days of receiving notice. Additionally, termination of any individual Franchise Agreement entered into to fulfill the developer's obligations can also trigger termination of the entire Development Agreement. This puts significant pressure on the developer to adhere to the schedule and maintain the performance of each opened location.
Upon termination, Deka Lash has the right to establish or license others to establish Deka Lash units within the previously reserved Development Area without any restrictions. The developer's right to open and operate any remaining franchises that have not yet opened for business is revoked. This underscores the importance of meeting the development schedule and maintaining good standing with all existing franchise agreements to retain the rights to the Development Area.