Does Deka Lash charge a transfer fee for transferring the franchise to a Controlled Entity?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 14.3 Transfer to a Controlled Entity. A "Controlled Entity" is an entity in which you are the beneficial owner of 100% of each class of voting ownership interest. A transfer to a Controlled Entity shall not trigger the Right of First Refusal, described in Section 14.6 below. At the time of the desired transfer of interest to a Controlled Entity, you must notify us in writing of the name of the Controlled Entity and the name and address of each officer, director, shareholder, member, partner, or similar person and their respective ownership interest. We do not charge a transfer fee for this change.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a transfer to a Controlled Entity does not incur a transfer fee. A "Controlled Entity" is defined as an entity where the franchisee is the beneficial owner of 100% of each class of voting ownership interest.
To transfer the franchise to a Controlled Entity, the franchisee must notify Deka Lash in writing. This notification must include the name of the Controlled Entity and the name and address of each officer, director, shareholder, member, partner, or similar person, along with their respective ownership interest.
This policy benefits franchisees by allowing them to structure their business ownership without incurring additional fees, provided they maintain complete ownership and control through the Controlled Entity. This can be useful for liability or tax purposes. Franchisees should ensure they meet all notification requirements to avoid any potential issues with the transfer.