Under what conditions can a Deka Lash franchisee transfer their Franchise Agreement?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Your rights under this Agreement are personal and you may not sell, transfer, or assign any right granted herein, including but not limited to a transfer, sale, or assignment of any shares, stock, membership, or other ownership interest in this Agreement. Notwithstanding, if you are an individual, you may assign your rights under this Agreement to a corporation or limited liability company that is wholly owned by you according to the same terms and conditions as provided in your initial Franchise Agreement. We, at our discretion, have the right to assign this Agreement to a person or entity who remains bound by its terms.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, a franchisee's rights under the Development Agreement are personal and generally cannot be sold, transferred, or assigned. This restriction includes any transfer, sale, or assignment of shares, stock, membership, or other ownership interest in the Development Agreement.
However, if the franchisee is an individual, they may assign their rights under the Development Agreement to a corporation or limited liability company that they wholly own. This assignment must adhere to the same terms and conditions as the initial Franchise Agreement.
Deka Lash, at its discretion, retains the right to assign the Development Agreement to another person or entity, provided that the assignee remains bound by the original terms of the agreement. This ensures that any new party taking over the agreement is obligated to uphold the existing conditions and responsibilities.