Under what condition can a Deka Lash franchise be terminated by mutual agreement?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
c. You have no automatic right to continue operation of the Franchise following expiration or termination of this Agreement. If you continue to operate the Franchise with our express consent, following the expiration or termination of this Agreement, the continuation will be a month-to-month extension of this Agreement. This Agreement will then be terminable by either party upon 30 days written notice. Otherwise, all provisions of this Agreement will apply while operations continue.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
The 2024 Deka Lash Franchise Disclosure Document does not explicitly detail the conditions under which a Deka Lash franchise can be terminated by mutual agreement. However, it does state that if a franchisee continues to operate the franchise with Deka Lash's express consent after the agreement's expiration or termination, it becomes a month-to-month extension, terminable by either party with 30 days' written notice.
While the FDD does not provide specific terms for mutual termination, it outlines various conditions under which Deka Lash can terminate the agreement, such as failure to meet development schedules, termination of associated franchise agreements, ceasing active engagement in development activities, or insolvency. These termination clauses are primarily focused on the developer's failure to meet obligations or financial instability.
Prospective franchisees should seek clarification from Deka Lash regarding the specific conditions and procedures for mutual termination to fully understand their rights and obligations. Understanding the circumstances that allow for mutual termination can help franchisees plan for unforeseen circumstances and ensure a smoother exit from the franchise system if needed. It is important to have a clear understanding of all termination clauses, not just those initiated by the franchisor, to protect your investment and business interests.