When is the Deka Lash audit fee due?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 6: OTHER FEES]
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Prospect | The actual cost | Prior to us giving | In the event you decide to sell |
| Generation | incurred by us, including commissions and fees charged by business brokers in cases where the buyer is identified through such broker. | consent to transfer your operating studio. | your operating studio to a prospective franchisee that comes from a lead generated through us (including broker networks, consultants, and referral sources used by us) you will be required to pay us a Prospect Generation Fee to reimburse us for our associated expenses before we will consent to the transfer of the operating studio to such a buyer. This fee is in addition to the Transfer Fee. |
| Fee | |||
| Legal Fees and Costs | Actual amount of attorney fees and costs incurred. | When incurred. | You must reimburse our attorney fees and costs for all expenses reasonably incurred (i) to enforce the terms of your Franchise Agreement or any obligation owed to us and our affiliates, whether or not we initiate the legal proceeding, unless we initiate and fail to substantially prevail in such court or formal legal proceeding; (ii) in the defense of any claim Franchisee asserts against us on which we substantially prevail in court or other formal legal proceedings; and (iii) as to any disputes that originate between you and any client, vendor, or other third-party affiliate of yours. |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
Based on the 2024 Deka Lash Franchise Disclosure Document, there is no mention of a standard 'audit fee' within the provided excerpts. However, it does mention 'Legal Fees and Costs' that could be related to an audit if Deka Lash incurs these fees to enforce the Franchise Agreement.
The Legal Fees and Costs are due 'When incurred.' This means a Deka Lash franchisee would need to reimburse Deka Lash for attorney fees and costs as they are billed. These costs can arise from enforcing the Franchise Agreement, defending claims asserted against Deka Lash by the franchisee, or disputes between the franchisee and a third party.
As the FDD does not specifically list an 'audit fee,' prospective franchisees should ask Deka Lash about potential audit scenarios, what triggers them, and how much these audits typically cost. Understanding these potential expenses is crucial for accurate financial planning.