Is Deka Lash permitted to assign the Franchise Agreement to another entity?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Your rights under this Agreement are personal and you may not sell, transfer, or assign any right granted herein, including but not limited to a transfer, sale, or assignment of any shares, stock, membership, or other ownership interest in this Agreement. Notwithstanding, if you are an individual, you may assign your rights under this Agreement to a corporation or limited liability company that is wholly owned by you according to the same terms and conditions as provided in your initial Franchise Agreement. We, at our discretion, have the right to assign this Agreement to a person or entity who remains bound by its terms.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash has the right to assign the Franchise Agreement to another person or entity. The assignee must remain bound by the terms of the original agreement.
However, franchisees' rights under the agreement are personal, meaning they cannot sell, transfer, or assign any rights granted to them. There is an exception for individual franchisees, who may assign their rights to a corporation or limited liability company that they wholly own, provided it's under the same terms and conditions as the initial Franchise Agreement.
This clause ensures that Deka Lash retains flexibility in its business operations, including the possibility of being acquired or undergoing restructuring. For a franchisee, this means that while the brand ownership could change, the terms of their agreement should remain consistent. However, franchisees do not have the same freedom to transfer their rights, except under specific conditions, ensuring Deka Lash maintains control over who operates its franchises.