Does Deka Lash require franchisees to acknowledge receiving the Franchise Disclosure Document before signing?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
EXHIBIT F-5 CLOSING ACKNOWLEDGMENTS
Not to be used as to any franchise sale in or to residents of CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI]
Do not sign the Closing Acknowledgments if you are a resident of Maryland or the franchise is to be operated in Maryland.
DL FRANCHISING, LLC ("Deka Lash") ("we/us"), through the use of this Franchisee Closing Acknowledgement, desires clarify and confirm your understanding and acceptance of the terms of the agreements, to verify certain information about the sales process, and to confirm that we and our employees have complied with applicable franchise disclosure laws and have not authorized anything that may be untrue, inaccurate or misleading. We further desire to confirm that you fully understand that the purchase of a Deka Lash franchise is a business decision involving the evaluation of many risks. Our policy is to verify and confirm that in making your decision you are not relying upon any oral statement, representation, promise or assurance made during the negotiations for the purchase of a Deka Lash franchise by any of our directors, officers, employees, agents, or representatives (each, a "Representative") that is not specifically reported in our then-current Franchise Disclosure Document, including all of the exhibits attached to it (the "Franchise Disclosure Document"). Please review each of the following questions and statements and INITIAL ONLY IF YOU AGREE WITH SUCH. IF YOU DO NOT AGREE WITH THE FOLLOWING, DO NOT SIGN YOUR FRANCHISE AGREEMENT.
- I have personally and carefully reviewed the Franchise Disclosure Document and Deka Lash Franchise Agreement and understand the terms, conditions, and obligations of these agreements.
EXHIBIT N RECEIPT
This disclosure document summarizes certain provisions of the franchise agreement and other information in plain language. Read this disclosure document and all agreements carefully.
If DL Franchising, LLC d/b/a Deka Lash offers you a franchise, we must provide this disclosure document to you 14 calendar days before you sign a binding agreement with, or make a payment to, us or an affiliate in connection with the proposed franchise sale.
lowa requires that we give you this Disclosure Document at the earlier of the first personal meeting or 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
Michigan requires that we give you this Disclosure Document at least 10 business days before the execution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first.
New York requires that we give you this Disclosure Document at the earlier of the first personal meeting or 10 business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
Yes, according to the 2024 Deka Lash Franchise Disclosure Document, franchisees are required to acknowledge that they have received and reviewed the Franchise Disclosure Document (FDD) and the Franchise Agreement. This acknowledgement is part of the Deka Lash Closing Acknowledgements (Exhibit F-5). Franchisees must confirm their understanding and acceptance of the terms, conditions, and obligations outlined in these documents.
Specifically, franchisees must initial each statement within the Closing Acknowledgements to indicate their agreement. This process verifies that Deka Lash has complied with franchise disclosure laws and has not made any untrue, inaccurate, or misleading statements. It also confirms that the franchisee understands that investing in a Deka Lash franchise is a business decision involving risks and that they are not relying on any oral statements or representations not included in the FDD.
Furthermore, Deka Lash requires that prospective franchisees sign and date a receipt (Exhibit N) confirming they received the FDD. This receipt includes a list of all exhibits included with the disclosure document, such as the Franchise Agreement, state addenda, financial statements, and other important documents. The franchisee is instructed to retain a copy of this signed receipt for their records. This receipt confirms that Deka Lash provided the FDD at least 14 calendar days before the franchisee signs any binding agreement or makes any payment, as required by federal law and some state laws (with specific variations for Iowa, Michigan and New York).