What standards must a transferee meet to be approved by Deka Lash?

• 14.5 Conditions for Approval of Transfer. We may condition our approval of any proposed sale or transfer of the franchised business or of your interest in this Agreement upon satisfaction of the following occurrences:
  • a) You are current in all monetary obligations to us, our affiliates, and our designated/approved suppliers and vendors;
  • b) You are in full compliance with this Agreement;
  • c) You execute any transfer, amendment, or release forms that we may require;
  • d) You or the transferee will provide to us a copy of the proposed documents as we may request to evidence the transfer;

For a transfer under Section 14.2 above, the following conditions also apply:

• e) The transferee must be approved by us and demonstrate to our satisfaction that s/he meets our educational, managerial and business standards; possesses a good moral character, business reputation and credit rating; has the aptitude and ability to conduct the business to be transferred; and has adequate financial resources and capital to meet the performance obligations under this Agreement;
• f) The transferee must execute our then-current Franchise Agreement;
• g) You or the transferee must pay to us the Transfer Fee specified in Section 4 above;
• h) The transferee must satisfactorily complete our initial training program at the transferee's expense within the time frame we establish;
• i) You must comply with the post-termination provisions of this Agreement;
• j) The transferee must obtain within the time limits set by us and maintain thereafter, all permits and licenses required for operation of the Franchised Business;
• k) To the extent required by the terms of any leases or other agreements, the lessors or other parties must have consented to the proposed transfer;
• I) The transfer must be made in compliance with any laws that apply to the transfer, including state and federal laws governing the offer and sale of franchises;
• m) The purchase price and terms of the proposed transfer are not so burdensome to the prospective transferee as to impair or materially threaten its future operation and performance under its franchise agreement;
• n) You must request that we provide the prospective transferee with our current franchise disclosure document:
• o) Our approval of the transfer will not constitute a waiver of any claims we may have against the transferring party;

Source: Item 23 — RECEIPT (FDD pages 63–234)