Does Deka Lash have the option to cure a franchisee's breaches at the franchisee's expense?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
or seized, taken over, or foreclosed by a creditor, lienholder, or lessor, provided that a final judgment against the franchisee remains unsatisfied for 30 days (unless a supersedeas or other appeal bond has been filed); or a levy of execution has been made upon the license granted by the franchise agreement or upon any property used in the franchised business, and it is not discharged within five days of such levy;
- (i) The franchisee is convicted of a felony or any other criminal misconduct which is relevant to the operation of the franchise;
- (j) The franchisee fails to pay any franchise fees or other amounts due to the franchisor or its affiliate within five days after receiving written notice that such fees are overdue; or
- (k) The franchisor makes a reasonable determination that continued operation of the franchise by the franchisee will result in an imminent danger to public health or safety.
- 10.3 Termination by Us with Opportunity to Cure. We may terminate this Agreement, after sending you notice and a 60 day opportunity to cure, for any other breach of this Agreement.
Sections 11(f) concerning lease assignment is deleted
Section 22.1 concerning Investigation is deleted.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise. See NASAA STATEMENT OF POLICY REGARDING THE USE OF FRANCHISE QUESTIONNAIRES AND ACKNOWLEDGMENTS. https://www.nasaa.org/wp-content/uploads/2022/11/sop-franchise-questionnaires.pdf.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash can terminate the Franchise Agreement, but in some cases, the franchisee has an opportunity to cure the breach. Deka Lash may terminate the agreement after sending a notice and providing a 60-day opportunity to cure for any breach of the agreement.
However, there are certain circumstances where Deka Lash can terminate the agreement without providing an opportunity to cure. These include if the franchisee is convicted of a felony or any other criminal misconduct relevant to the franchise operation, fails to pay franchise fees or other amounts due within five days after written notice of overdue fees, or if Deka Lash reasonably determines that the continued operation of the franchise by the franchisee will result in an imminent danger to public health or safety.
If a franchisee fails to comply with the terms of the listings, including telephone numbers, telephone listings, email addresses, domain names, social media accounts, Internet listings, websites, and comparable electronic identities used in connection with the Marks or the operation of the Franchised Business covered by the Agreement, whether now-existing or adopted by Franchisee in the future, (collectively "Listings"), the franchisee may be required to install and maintain, at the franchisee's sole expense, an intercept message, in a form and manner acceptable to Deka Lash on any or all of the Listings.