What are the typical payment requirements outlined in Deka Lash franchise agreements?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
REEMENT** is made between DL Franchising, LLC d/b/a Deka Lash, ("we," "us," or "our") and the franchisee named below ("you" or "your").
The parties are entering into one or more Franchise Agreements. For value received, Franchisee hereby irrevocably assigns to Franchisor all listings associated with the Deka Lash franchise, including all telephone numbers, telephone listings, email addresses, domain names, social media accounts, Internet listings, websites, and comparable electronic identities used in connection with the Marks or the operation of the Franchised Business covered by the Agreement, whether now-existing or adopted by Franchisee in the future, (collectively "Listings").
As a condition to signing the Franchise Agreement(s), we have required that you assign all of your Listings relating to the Deka Lash Franchise(s) to us upon the expiration or termination of any of the Franchise Agreements.
Franchisee agrees to update us as soon as possible of any listings adopted by Franchisee. Franchisee agrees to pay all amounts pertaining to the use of the Listings incurred by it when due. 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.
Franchisee appoints Franchisor as Franchisee's attorney-in-fact, to act in Franchisee's place, for the purpose of assigning any Listings covered by the Assignment to Franchisor or Franchisor's designated agent or taking any other actions required of Franchisee under this Agreement. Franchisee grants Franchisor full authority to act in any manner proper or necessary to the exercise of the forgoing powers, including full power of substitution and execution or completion of any documents required or requested by any telephone or other company to transfer such numbers, and Franchisee ratifies every act that Franchisor may lawfully perform in exercising those powers. This power of attorney shall be effective for a period of two (2) years from the date of expiration, cancellation or termination of Franchisee's rights under the Agreement for any reason. Franchisee intends that this power of attorney be coupled with an interest. Franchisee declares this power of attorney to be irrevocable and renounces all rights to revoke it or to appoint another person to perform the acts referred to in this instrument.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
Based on the 2024 Deka Lash Franchise Disclosure Document, franchisees are responsible for various payments throughout the duration of the franchise agreement. As a condition of signing the Franchise Agreement, Deka Lash requires franchisees to assign all listings associated with the Deka Lash franchise, including telephone numbers, email addresses, domain names, social media accounts, Internet listings and websites, to Deka Lash upon the expiration or termination of any of the Franchise Agreements. Franchisees must also keep Deka Lash updated on any listings they adopt and pay all amounts pertaining to the use of the Listings incurred by it when due. Upon expiration or termination of the Agreement for any reason, Franchisee's right of use of the Listings shall terminate, and the franchisee is responsible for paying all outstanding amounts related to these listings.
Additionally, the FDD states that Deka Lash may require franchisees to transfer all phone numbers associated with the Franchised Business to Deka Lash or an approved vendor. The agreement also stipulates that all individuals signing the agreement, including spouses, are jointly and severally responsible for performing all obligations, including making specified payments and paying any other debts due to Deka Lash. These individuals also guarantee Deka Lash against any losses or expenses incurred due to the franchisee's failure to meet their obligations.
These payment requirements and obligations are typical in franchise agreements, as franchisors need to protect their brand and ensure consistent operations across all locations. Prospective Deka Lash franchisees should carefully review the franchise agreement and related documents to fully understand their financial obligations and the potential consequences of non-compliance. It is also advisable to seek legal and financial counsel to assess the implications of these requirements before entering into a franchise agreement with Deka Lash.