Under what condition can Deka Lash refuse to renew a franchise agreement?

According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash may refuse to renew a franchise agreement if the franchisee fails to satisfactorily comply with the existing agreement. The determination of satisfactory compliance is at Deka Lash's exclusive discretion, made in good faith. However, even if Deka Lash refuses to renew the agreement, the franchisee must continue to perform under the existing agreement until its expiration.

To be eligible for renewal, a Deka Lash franchisee must be in good standing and in full compliance with the franchise agreement. They must also have satisfied all monetary obligations to Deka Lash. The franchisee needs to provide notice of their intent to renew at least 3 months, but not more than 6 months, before the end of the franchise term.

Additionally, the franchisee must execute a general release, in a form prescribed by Deka Lash, releasing Deka Lash from any claims. They must also execute Deka Lash's then-current Franchise Agreement within 30 days of receiving it, which may contain materially different terms and conditions than the original agreement. Finally, the franchisee must pay a renewal fee of $3,500 and successfully complete any retraining program that Deka Lash requires, at the franchisee's expense.

This clause gives Deka Lash significant latitude in deciding whether to renew a franchise agreement. The "good faith" requirement provides some protection to the franchisee, but the ultimate decision rests with Deka Lash. Prospective franchisees should carefully consider these conditions and the potential for changes in the franchise agreement upon renewal.