Regarding Deka Lash franchises, what is the specific condition for the Virginia Addendum to the Franchise Agreement to apply?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
The State Addenda to the Franchise Agreement apply to you if you are a resident of the state as to which an Addendum follows, or your franchise territory is in that state, with the exception of Virginia. In the case of Virginia, any Virginia Addendum to the Franchise Agreement only applies if the franchise territory is in Virginia.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the Virginia Addendum to the Franchise Agreement applies specifically if the franchise territory is located within Virginia. This means that if a prospective franchisee is opening a Deka Lash location in Virginia, the specific stipulations and modifications outlined in the Virginia Addendum will take precedence over any conflicting terms in the standard Franchise Agreement.
This condition is important for potential Deka Lash franchisees in Virginia because the addendum contains provisions specific to that state. For example, the Virginia Addendum includes stipulations regarding an escrow account for initial franchise fees due to Deka Lash's financial condition, as required by the Virginia State Corporation Commission's Division of Securities and Retail Franchising. This escrow ensures that the franchisee's initial investment is protected until Deka Lash fulfills its pre-opening obligations.
Therefore, any individual or entity considering a Deka Lash franchise in Virginia should carefully review the Virginia Addendum to understand their rights and obligations, particularly those related to financial matters and compliance with Virginia state regulations. The FDD also states that the Virginia Addendum supersedes any inconsistent provisions in the standard Franchise Agreement, emphasizing its importance for franchisees operating in Virginia.