In Washington, what conditions must be met for Deka Lash to discontinue maintaining the surety bond?

According to Deka Lash's 2024 Franchise Disclosure Document, the Washington Securities Division has made the issuance of the franchisor's permit contingent upon Deka Lash maintaining a surety bond of $100,000. Deka Lash must maintain this coverage until one of two conditions is met. The first condition is that all Washington franchisees have (i) received all initial training that they are entitled to under the franchise agreement or offering circular, and (ii) are open for business. Alternatively, Deka Lash can discontinue the surety bond if the Administrator of the Washington Securities Division issues written authorization to the contrary.

This requirement ensures that Deka Lash franchisees in Washington receive adequate training and are operational before the franchisor can be released from the financial security provided by the surety bond. This protects the franchisees' initial investment and ensures they have the necessary resources to start their business.

Prospective Deka Lash franchisees in Washington should confirm with the franchisor and the Washington Securities Division that the surety bond is currently in place and understand which of the two conditions, (a) or (b), will govern its release. This information is crucial for assessing the financial security and regulatory compliance of the franchise offering in Washington.