Under what condition must I enter into additional Franchise Agreements with Deka Lash for additional Franchised Businesses?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- c) Failure to Meet Development Schedule. If Developer fails to meet its development obligations under the Development Schedule for any Development Period, and fails to cure such default within 30 days of receiving notice thereof; and
- d) Termination of Associated Franchise Agreement(s). If any Franchise Agreement that is entered into in order to fulfill Developer's development obligations under this Agreement is terminated or subject to termination by Franchisor, pursuant to the terms of that Franchise Agreement.
Upon termination of this Agreement, Franchisor may establish or license others to establish Deka Lash units and operations within the previously reserved Development Area without limitation or restriction. In addition, Developer's right to open and operate any of the remaining Franchises that have not yet opened for business in the Development Area is revoked and terminated. This means that Developer will have no further right to construct, equip, own, open or operate additional Deka Lash units which are not, at the time of termination or expiration, the subject of a then-existing Franchise Agreement between Franchisor and Developer which is in full force and effect.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, if you sign a Development Agreement, you are obligated to adhere to a development schedule. If you fail to meet your development obligations under the Development Schedule for any Development Period, and fail to correct this within 30 days after receiving notice, you may be in default.
Additionally, if any Franchise Agreement that is entered into to fulfill your development obligations is terminated or subject to termination by Deka Lash, this can also affect your standing. Upon termination of the Development Agreement, Deka Lash has the right to establish or license others to establish Deka Lash units within the previously reserved Development Area without any restrictions.
Furthermore, your right to open and operate any remaining franchises that have not yet opened for business in the Development Area will be revoked and terminated. This means you will lose the right to construct, equip, own, open, or operate additional Deka Lash units that are not already subject to a then-existing Franchise Agreement between you and Deka Lash, which is in full force and effect.