How much time does the Deka Lash franchisor have to cure a tenant's default?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
n the time limits provided therein; or
- c. Voluntary institution of any insolvency or bankruptcy proceedings as a debtor or insolvent on the part of Tenant or involuntary insolvency or bankruptcy proceedings brought against Tenant which are not dismissed within 60 days of the filing thereof;
- d. Discontinuation by the Tenant of operation of a Deka Lash operation in the Premises, whether voluntarily or involuntarily; or
- e. Nonrenewal by Tenant of the Franchise Agreement
- III. During the term of the Lease, Landlord agrees to give Franchisor written notice of all defaults of Tenant concurrently with the giving of such notice to Tenant. Landlord
- further agrees to give Franchisor a 10 day period to cure such default, or the period provided to the Tenant in the Lease, whichever period shall be longer.
- IV. Nothing in this Agreement shall obligate Franchisor to cure any such default, unless Franchisor agrees in writing in its sole discretion.
- V. The date upon which the assignment shall be effective (the "Effective Date"), is the date upon which Landlord and Tenant receive written notice from Franchisor that:
- a. Franchisor will cure the default of Tenant in the Lease in which Landlord has given notice to Franchisor pursuant to the provisions of Section 3 above, and that Franchisor will assume the Lease; or
- b. The events described in either subsections 2(b), 2(c), 2(d) or 2(e) above have occurred and that Franchisor will assume the Lease.
- VI. As of the Effective Date, Franchisor will assume all rights, duties, responsibilities and obligations of Tenant arising on or after the Effective Date pursuant to the terms and provisions of the Lease.
- VII. Landlord hereby consents to the terms and provisions of this Agreement, and to the assignment of the Lease to Franchisor.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, if a Deka Lash franchisee (tenant) defaults on their lease agreement, the landlord must provide written notice of the default to Deka Lash concurrently with the notice to the franchisee. Deka Lash then has a period to cure the default, which is either 10 days or the period provided to the tenant in the lease, whichever is longer.
However, Deka Lash is not obligated to cure any such default unless Deka Lash agrees to do so in writing at its sole discretion. The date that the assignment of the lease to Deka Lash becomes effective is the date the landlord and tenant receive written notice from Deka Lash that Deka Lash will cure the default and assume the lease, or that certain events (such as tenant insolvency or discontinuation of operations) have occurred and Deka Lash will assume the lease.
Upon assuming the lease, Deka Lash takes on all the franchisee's rights, duties, responsibilities, and obligations under the lease from that point forward. Deka Lash can then sublease the premises to another franchisee or assign the lease to another franchisee, without requiring the landlord's further consent. Upon such assignment, Deka Lash will have no further liability under the lease. The franchisee and landlord are not allowed to surrender or assign the lease without Deka Lash's prior written consent.
This arrangement provides Deka Lash with the option to step in and take over a franchise location if the franchisee is struggling, ensuring business continuity and protecting the brand's presence. However, it's important to note that Deka Lash is not obligated to cure the default, and the landlord must provide Deka Lash with notice of any defaults concurrently with notifying the franchisee.