Under what conditions can Deka Lash terminate the Area Development Agreement for cause?

According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash can terminate the Area Development Agreement for cause under specific circumstances detailed in Section 6.2 of the agreement. These circumstances are divided into curable and non-curable defaults.

For curable defaults, Deka Lash may terminate the agreement if the franchisee fails to meet their development obligations under the mandatory development schedule and does not correct the issue within a 30-day cure period. However, this cure period is offered only once during the entire term of the Area Development Agreement. This means that if a franchisee fails to meet their development obligations, they have a limited opportunity to rectify the situation before Deka Lash can terminate the agreement.

For non-curable defaults, Deka Lash can terminate the Area Development Agreement immediately under several conditions: (i) abandonment of the project by the franchisee; (ii) franchisee's insolvency; (iii) failure to meet development obligations under the Development Schedule for any Development Period, without curing the default within 30 days of notice; and (iv) termination of any Franchise Agreement entered into to fulfill the development obligations under the Area Development Agreement. These conditions represent more severe breaches of the agreement, giving Deka Lash the right to terminate the agreement without offering an opportunity to cure the default (except for missing the development schedule, which does have a 30-day cure period).