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Under what circumstances is the Deka Lash addendum executed?

Deka_Lash Franchise · 2024 FDD

Answer from 2024 FDD Document

information contained in this Schedule and, at our request, prepare and sign a new addendum containing the correct information.

APPROVED AND AGREED TO BY:

FRANCHISEE FRANCHISOR DL Franchising, LLC (Name of corporation, partnership, limited d/b/a Deka Lash liability company or other legal entity or individually if blank) Signature: Signature: Name: Name: Title: Title: Date: Date: Signature: Name: Title: Date: Signature: Name: Title: Date: Signature: Name: Title: Date:

SCHEDULE 3 - STATE ADDENDA TO THE FRANCHISE AGREEMENT

To the extent applicable, the following State Addenda supersede any inconsistent provision in your Franchise Agreement.

The State Addenda to the Franchise Agreement apply to you if you are a resident of the state as to which an Addendum follows, or your franchise territory is in that state, with the exception of Virginia. In the case of Virginia, any Virginia Addendum to the Franchise Agreement only applies if the franchise territory is in Virginia.

CALIFORNIA ADDENDUM TO THE FRANCHISE AGREEMENT

If any of the terms of the Franchise Agreement are inconsistent with the terms below, the terms below control

Sections 10.2 and 10.3 are deleted and in their place are substituted the following:

  • 10.2 Termination by Us Without Right to Cure. We may terminate this Agreement without notice and the opportunity to cure for any of the following reasons:
  • (a) The franchisee or the business to which the franchise relates has been judicially determined to be insolvent, all or a substantial part of the assets thereof are assigned to or for the benefit of any creditor, or the franchisee admits his or her inability to pay his or her debts as they come due:
  • (b) The franchisee abandons the franchise by failing to operate the business for five consecutive days during which the franchisee is required to operate the business under the terms of the franchise, or any shorter period after which it is not unreasonable under the facts and circumstances for the franchisor to conclude that the franchisee does not intend to continue to operate the franchise, unless such failure to operate is due to fire, flood, earthquake, or other similar causes beyond the franchisee's control;
    • (c) The franchisor and franchisee agree in writing to terminate the franchise;
  • (d) The franchisee makes any material misrepresentations relating to the acquisition of the Franchised Business or the franchisee engages in conduct which reflects materially and unfavorably upon the operation and reputation of the Franchised Business or system;
  • (e) The franchisee fails, for a period of 10 days after notification of noncompliance, to comply with any federal, state, or local law or regulation, including, but not limited to, all health, safety, building, and labor laws or regulations applicable to the operation of the franchise;
  • (f) The franchisee, after curing any failure in accordance with Section 10.3 engages in the same noncompliance whether or not such noncompliance is corrected after notice;
  • (g) The franchisee breaches the franchise agreement three or more times in a 12-month period, whether or not corrected after notice;

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

What This Means (2024 FDD)

According to the 2024 Deka Lash Franchise Disclosure Document, there are several addenda that may be executed as part of the franchising process. One addendum modifies the terms and conditions in the lease agreement, where its terms supersede any conflicting terms in the lease. Another addendum involves the assignment of telephone numbers and internet listings from the franchisee to the franchisor. Additionally, state-specific addenda are applicable if the franchisee is a resident of or the franchise territory is located in a state with an addendum.

Specifically, Schedule 3 outlines that state addenda to the Franchise Agreement apply if the franchisee is a resident of a state with an addendum or if their franchise territory is located in that state. However, in the case of Virginia, the Virginia Addendum only applies if the franchise territory is specifically in Virginia. This means that franchisees need to be aware of the specific addenda that apply to their situation based on their location and residency.

Furthermore, Deka Lash includes a California addendum to the franchise agreement, which states that if any terms of the Franchise Agreement are inconsistent with the terms in the California addendum, the terms of the addendum will take precedence. For example, sections 10.2 and 10.3 regarding termination are deleted and replaced with new conditions, such as those related to insolvency. Similarly, there is an Illinois addendum to the Area Development Agreement that modifies certain provisions, such as those related to waiving compliance with Illinois franchise law or designating jurisdiction outside of Illinois. These addenda ensure compliance with state-specific regulations and provide additional protections or modifications to the standard franchise agreement.

Finally, franchisees may be required to sign a new addendum if there are any changes to the information contained in Schedule 3. This ensures that the information remains current and accurate. Prospective franchisees should carefully review all addenda applicable to their situation and understand how these addenda modify the standard franchise agreement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.