factual

Must modifications to the Deka Lash Area Development Agreement be in writing?

Deka_Lash Franchise · 2024 FDD

Answer from 2024 FDD Document

Section in
Area
Provision Developme nt Agreement Summary
g. "Cause" defined – curable defaults 6.2 We may terminate the Area Development Agreement if you fail to meet your development obligations under the mandatory development Schedule and fail to cure the default within a 30-day cure period. This cure period will only be offered once during the term of your Area Development Agreement.
h. "Cause" defined – non- curable defaults 6.2 We may terminate the Area Development Agreement if: (i) abandonment; (ii) insolvency; (iii) if you fail to meet your development obligations under the Development Schedule for any Development Period, and fail to cure such default within 30 days of receiving notice thereof; and (iv) if any Franchise Agreement that is entered into in order to fulfill your development obligations under this Agreement is terminated.
i. Franchisee's obligations on termination/non-renewal Not Applicable Not Applicable.
j. Assignment of contract by franchisor 8 No restrictions on our right to assign our rights under the Area Development Agreement to a person or entity who agrees to remain bound to its terms.
k. "Transfer" by franchisee – defined 8 Any sale, transfer, or assignment of any of your rights under the Area Development Agreement.
I. Franchisor's approval of transfer by franchisee 8 You may not transfer any rights or obligations under the Area Development Agreement.
m. Conditions for franchisor's approval of transfer Not Applicable Not Applicable.
n. Franchisor's right of first refusal to acquire franchisee's business Not Applicable Not Applicable.
Ο. Franchisor's option to purchase franchisee's business Not Applicable Not Applicable.
p. Death or disability of franchisee Not Applicable Not Applicable.
q. Non-competition covenants during the term of the franchise Not Applicable Please see non-competition covenants set forth in your Franchise Agreement(s) entered into under the Area Development Agreement.
r. Non-competition covenants after the franchise is terminated or expires Not Applicable Please see non-competition covenants set forth in your Franchise Agreement(s) entered into under the Area Development Agreement.
S. Modification of the agreement 10.6 Any modification of the Area Development Agreement must be in writing and signed by both parties.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)

What This Means (2024 FDD)

According to Deka Lash's 2024 Franchise Disclosure Document, any modifications to the Area Development Agreement must be in writing and signed by both parties. This requirement is outlined in Section 10.6 of the Area Development Agreement.

This stipulation means that any changes to the original terms of the Area Development Agreement are not valid unless they are documented in a written amendment and agreed upon by both Deka Lash and the area developer. This protects both parties by ensuring that all modifications are clear, unambiguous, and legally enforceable.

For a prospective Deka Lash area developer, this clause highlights the importance of carefully reviewing and understanding the initial Area Development Agreement, as any desired changes must be formally documented and agreed upon in writing. It also underscores the need to maintain thorough records of all agreements and modifications to avoid potential disputes or misunderstandings in the future.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.