After termination of a Deka Lash franchise, what is the franchisee's obligation regarding outstanding payments to the franchisor?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Upon expiration or termination of the Agreement for any reason, Franchisee's right of use of the Listings shall terminate. In the event of termination or expiration of the Agreement, Franchisee agrees to pay all amounts owed in connection with the Listings, including all sums owed under existing contracts for telephone directory advertising and to immediately at Franchisor's request, (i) take any other action as may be necessary to transfer the Listings and numbers to Franchisor or Franchisor's designated agent, (ii) install and maintain, at Franchisee's sole expense, an intercept message, in a form and manner acceptable to Franchisor on any or all of the Listings; (iii) disconnect the Listings; and/or (iv) cooperate with Franchisor or its designated agent in the removal or relisting of any telephone directory or directory assistance listing, Internet directory, website or advertising, whether published or online.
Franchisee agrees that Franchisor may require that all telephone numbers and telephone and internet equipment and service must be owned or provided by Franchisor or a supplier approved by Franchisor and that Franchisor has the right to require Franchisee to "port" or transfer to Franchisor or an approved call routing and tracking vendor all phone numbers associated with the Franchised Business or published in any print or online directory, advertisement, marketing or promotion associated with the Marks.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, if the Franchise Agreement is terminated or expires, the franchisee is obligated to pay all outstanding amounts related to the Listings. This includes any sums owed under existing contracts for telephone directory advertising.
Additionally, upon termination or expiration, the franchisee must take specific actions at Deka Lash's request. These actions include transferring the Listings and numbers to Deka Lash or its designated agent. The franchisee is also responsible for installing and maintaining an intercept message on any or all of the Listings in a form and manner acceptable to Deka Lash, disconnecting the Listings, and cooperating with Deka Lash or its agent in the removal or relisting of any telephone directory or directory assistance listing, Internet directory, website, or advertising, whether published or online. All of these actions are to be completed at the franchisee's sole expense.
Furthermore, Deka Lash may require that all telephone numbers and telephone and internet equipment and service be owned or provided by Deka Lash or a supplier approved by Deka Lash. Deka Lash has the right to require the franchisee to transfer all phone numbers associated with the Franchised Business or published in any print or online directory, advertisement, marketing, or promotion associated with the Marks to Deka Lash or an approved call routing and tracking vendor.