Before signing a lease, sublease, or purchase agreement, what approval must a Deka Lash franchisee obtain?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) Lease. Before you sign a lease, sublet a space, purchase space or make any binding commitment to do so, we must approve, in writing your proposed location.
You will deliver to us a true copy of the lease and any additions or amendments to it promptly after they are executed.
Any lease or sublease of the Franchise Premises will contain the Franchisor Addendum, Conditional Assignment of Lease attached in Exhibit F-1 or will otherwise include an assignment of the lease in a form we approve.
- (e) Relocation Review. You must obtain our approval if you wish to relocate.
We will evaluate locations you propose to us to relocate your studio.
You must submit to us a site selection proposal containing reasonable items required by us to evaluate the site.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, before a franchisee signs a lease, sublease a space, purchases a space, or makes any binding commitment to do so, they must obtain written approval of the proposed location from Deka Lash.
This requirement ensures that the franchisee selects a location that meets Deka Lash's standards and is likely to be successful. It allows Deka Lash to maintain brand consistency and protect its image. The franchisee must also provide Deka Lash with a true copy of the lease and any additions or amendments promptly after they are executed.
Furthermore, any lease or sublease of the Franchise Premises must contain the Franchisor Addendum, Conditional Assignment of Lease attached in Exhibit F-1, or will otherwise include an assignment of the lease in a form Deka Lash approves. This protects Deka Lash's interests in the event the franchisee defaults on the lease or the franchise agreement is terminated. Deka Lash also requires approval if a franchisee wishes to relocate their studio, and the franchisee must submit a site selection proposal containing reasonable items required by Deka Lash to evaluate the site.