Under what insolvency conditions can the Deka Lash Development Agreement be terminated?

According to the 2024 Deka Lash Franchise Disclosure Document, the Development Agreement can be terminated if the Developer becomes insolvent. Insolvency is defined as being unable to pay bills in the ordinary course of business as they become due.

This means that if a Deka Lash developer is unable to meet their financial obligations, Deka Lash has the right to terminate the Development Agreement. This is a significant risk for developers, as it means that they could lose their rights to develop Deka Lash units in the Development Area if they experience financial difficulties.

It is important for prospective Deka Lash developers to carefully consider their financial situation before entering into a Development Agreement. They should also have a plan in place to manage their finances and avoid insolvency. This could include securing adequate funding, carefully managing expenses, and closely monitoring cash flow. Because the FDD excerpt does not specify whether Deka Lash would provide an opportunity to cure this default, prospective franchisees should inquire about this with the franchisor.