Within the 10-year period preceding the Deka Lash application for registration, does the brand require disclosure if a party has been convicted of or pleaded nolo contendere to a misdemeanor charge?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
MS COVERED IN THE DISCLOSURE DOCUMENT. HOWEVER, THE FRANCHISOR CANNOT USE THE NEGOTIATING PROCESS TO PREVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS WHICH ARE LESS FAVORABLE SET THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.
- The following is added at the end of Item 3:
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices or comparable civil or misdemeanor allegations.
- B.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash must disclose if certain parties have been convicted of or pleaded nolo contendere to a misdemeanor charge within the 10-year period immediately preceding the application for registration. This disclosure requirement applies to the franchisor (DL Franchising, LLC), its predecessors, individuals identified in Item 2 of the FDD, or any affiliate offering franchises under Deka Lash's principal trademark.
Specifically, Item 2 of the Deka Lash FDD requires disclosure if any of these parties have been convicted of or pleaded nolo contendere to a misdemeanor charge within the specified 10-year timeframe. This disclosure is in addition to requirements regarding any pending or prior administrative, criminal, or civil actions alleging felonies, violations of franchise law, fraud, embezzlement, or unfair practices.
This disclosure requirement ensures transparency for potential franchisees. It allows them to assess the background and integrity of the individuals and entities involved in offering the Deka Lash franchise. A prospective franchisee can use this information to make a more informed decision about investing in the franchise, considering any potential risks associated with the disclosed misdemeanor charges or convictions.