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

According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash can terminate the Area Development Agreement with cause under certain conditions, as detailed in Section 6.2 of the agreement. These conditions are categorized 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 this failure 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 falls behind on their development schedule, they have a single opportunity to catch up within 30 days of receiving notice from Deka Lash.

For non-curable defaults, Deka Lash can terminate the Area Development Agreement immediately under several circumstances: (i) if the franchisee abandons the project; (ii) if the franchisee becomes insolvent; (iii) if the franchisee fails to meet development obligations under the Development Schedule for any Development Period and fails to cure such default within 30 days of receiving notice; and (iv) if any Franchise Agreement entered into to fulfill development obligations under the Area Development Agreement is terminated. These conditions represent serious breaches of the agreement, giving Deka Lash the right to terminate the agreement to protect their brand and business interests.