With which bank does Deka Lash establish its escrow account?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Due to our financial condition, the Virginia State Corporation Commission's Division of Securities and Retail Franchising requires us to establish an escrow account for all initial franchise fees that we charge. You shall make your check for franchise fees or other payments to the depository (Truist Bank) and send the check to us. Within two business days of our receipt of the check, we will deposit the check into an escrow account that we have established with Truist.Bank.
When we complete all of our pre-opening obligations to you (listed in Item 11 of this Disclosure Document), we will request that you affirm, in writing, that we have completed those obligations and that you assent to release of the funds held in escrow. After receipt of authorization from the Commission, the depository shall release the funds held in escrow by the depository to us to be applied to your account with us.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash is required to establish an escrow account with Truist Bank for all initial franchise fees charged in Virginia due to the company's financial condition.
For prospective Deka Lash franchisees in Virginia, this means that the initial franchise fee check should be made payable to Truist Bank and sent to Deka Lash. Deka Lash will then deposit the check into the escrow account within two business days of receipt.
The funds in the escrow account will be released to Deka Lash only after the company has completed all pre-opening obligations outlined in Item 11 of the Franchise Disclosure Document, and the franchisee has confirmed in writing that these obligations have been met. Additionally, the Virginia State Corporation Commission must authorize the release of funds. This arrangement protects the franchisee's investment until Deka Lash fulfills its pre-opening responsibilities.