Under what conditions will Deka Lash grant a one-time, six-month extension to the development schedule?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Area Development Schedule Extension & Fees. In the event that you fail to meet your Area Development obligations under your Area Development Agreement, and you are (a) current on your obligations owed to us, (b) in compliance with your franchise agreement(s) and (c) showing a good faith effort in trying secure and open your next scheduled studio, then following will occur:
- a) Extension with Release (6 months). Per written notice to us and execution of a general release in our favor, we will grant you a one-time, six-month extension to your development schedule with no Delayed Opening Fee. This six-month extension can only be used once during your development agreement and delays all subsequent development dates by 6 months. Pursuant to COMAR 02.02.08.16L, the general release required as a condition of sale, or transfer, shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Source: Item 12 — TERRITORY (FDD pages 40–44)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a one-time, six-month extension to the area development schedule may be granted under specific conditions. To qualify for this extension, the franchisee must be current on all obligations owed to Deka Lash, in compliance with their franchise agreement(s), and demonstrating a good faith effort to secure and open their next scheduled studio.
To obtain the extension, the franchisee must provide written notice to Deka Lash and execute a general release in Deka Lash's favor. This extension is granted without any Delayed Opening Fee. It's important to note that this six-month extension can only be used once during the development agreement, and it delays all subsequent development dates by six months.
This policy provides a limited safety net for area developers facing unforeseen delays, but it emphasizes the importance of meeting the development schedule outlined in the Area Development Agreement. The requirement of a general release protects Deka Lash from potential future claims related to the delay. Franchisees should carefully consider the implications of delaying their development schedule, as it pushes back all subsequent opening dates and can only be utilized once.