What monetary obligations must a Deka Lash franchisee be current on to gain approval for a transfer of the franchised business?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 14.5 Conditions for Approval of Transfer. We may condition our approval of any proposed sale or transfer of the franchised business or of your interest in this Agreement upon satisfaction of the following occurrences:
- a) You are current in all monetary obligations to us, our affiliates, and our designated/approved suppliers and vendors;
- b) You are in full compliance with this Agreement;
- c) You execute any transfer, amendment, or release forms that we may require;
- d) You or the transferee will provide to us a copy of the proposed documents as we may request to evidence the transfer;
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, a franchisee must be current on all monetary obligations to Deka Lash, its affiliates, and its designated/approved suppliers and vendors to gain approval for a transfer of the franchised business.
In addition to being current on all monetary obligations, Deka Lash requires that the franchisee be in full compliance with the Franchise Agreement. The franchisee must also execute any transfer, amendment, or release forms that Deka Lash may require, and provide copies of proposed documents evidencing the transfer.
For a transfer to be approved by Deka Lash, the proposed transferee must also meet several conditions. The transferee must be approved by Deka Lash and demonstrate that they meet the brand's educational, managerial, and business standards. They must also possess a good moral character, business reputation, and credit rating, and have the aptitude and ability to conduct the business, as well as adequate financial resources and capital. The transferee is obligated to execute the then-current Deka Lash Franchise Agreement and complete the initial training program at their own expense within the established timeframe. Furthermore, the transferee must obtain and maintain all required permits and licenses for operating the Franchised Business.