Does Deka Lash need to approve a proposed lease before a franchisee signs it?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
The topics covered in initial training are described in the chart below in this Item 11. (Franchise Agreement, Section 5.1).
Site Selection. We provide site selection criteria, guidelines, and counseling to help you select a site. We do not select the site. It is your responsibility to locate and select a suitable site for your studio. You must submit to us a site selection proposal containing reasonable items required by us to evaluate the site. We must approve any site you select before you sign a lease for that location. We do not generally own the premises and lease it to you. Before you enter into a lease or purchase agreement, you must have the site approved by us. We consider the following factors in approving your site selection: general location, proximity to other affiliated/Deka Lash locations, neighborhood, traffic patterns, signage, parking, size, zoning, physical characteristics of the proposed space, demographics, population density of the area, and lease terms (including the cost of the build-out, monthly rent rate). We may conduct an on-site evaluation if we consider it necessary as part of our evaluation. We will typically approve or disapprove a proposed site within 14 days of your submission to us of the pertinent information required by us on the proposed site. If we accept a proposed site and you obtain it, we will insert a description of the specific location in Schedule 1 to the franchise agreement. In the unlikely event that you and we cannot agree on a site within the opening timeframe allowed, you can extend the timeline by getting approved and paying the opening deadline extension fee, we can allow you more time to search for a site that we can agree upon, or we can terminate the franchise agreement. (Franchise Agreement, Section 5.2(a)).
Build out. It is your responsibility to conform the premises to federal, state or local ordinances, building codes, licensing requirements (including those required for a studio that offers our services) and obtain any required permits. (Franchise Agreement, Sections 6.2(b)-(c)).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–40)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees must obtain written approval from Deka Lash before signing any lease or purchase agreement for their studio location. This requirement extends to leases, subleases, and purchasing space.
Site selection is a collaborative process where Deka Lash provides criteria and guidelines, but the franchisee is responsible for finding a suitable site. The franchisee must then submit a site selection proposal to Deka Lash for evaluation. Deka Lash considers factors such as general location, proximity to other Deka Lash locations, neighborhood characteristics, traffic patterns, signage, parking availability, size, zoning regulations, physical characteristics of the space, demographics, population density, and lease terms, including build-out costs and monthly rent.
Deka Lash typically approves or disapproves a proposed site within 14 days of receiving the necessary information. If the site is approved and obtained, its description is added to the franchise agreement. If an agreement on a site cannot be reached within the initial timeframe, the franchisee can request an extension by paying an opening deadline extension fee. Alternatively, Deka Lash may allow more time to find a mutually agreeable site, or the franchise agreement may be terminated.