What is the amount of the Development Fee that a Deka Lash Developer must pay, and is it refundable?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
You must pay to us a development fee in the amount set forth in the Data Sheet attached hereto as Appendix 1 (the "Development Fee") for the right to develop the foregoing Franchised Businesses within the Development Area under this Agreement (subject to the restrictions in section 1 above), which will be due immediately upon execution of this Agreement. The Development Fee is deemed fully earned upon payment and is not refundable under any circumstances. The parties agree and acknowledge that, upon payment of the Development Fee required by this Section, you will not be required to pay us an additional "Initial Franchise Fee" pursuant to any Franchise Agreement that you enter into to fulfill your development obligations under this Agreement.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, a developer must pay a Development Fee for the right to develop Franchised Businesses within a Development Area. The amount of this fee is set forth in the Data Sheet attached to the agreement as Appendix 1. This fee is due immediately upon the execution of the Development Agreement.
The FDD states that the Development Fee is considered fully earned upon payment. This means that once the fee is paid, Deka Lash has fulfilled its obligation to grant the developer the rights outlined in the agreement.
Importantly, the Development Fee is explicitly stated as non-refundable under any circumstances. This means that regardless of whether the developer successfully opens any Deka Lash studios or if the agreement is terminated, the developer will not receive a refund of the Development Fee. However, upon payment of the Development Fee, the developer will not be required to pay an additional "Initial Franchise Fee" pursuant to any Franchise Agreement that they enter into to fulfill their development obligations under the Development Agreement.