What are the consequences if a Deka Lash developer does not pay the delayed opening fee?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- c) Loss of Protected Territory. If at any point you (a) do not pay your delayed opening fee, (b) stop or refute our ability to ACH this transaction, (c) notify us, in writing, that you no longer want to be charged the delayed opening fees, or (d) after a period of 12 months of paying the delayed opening fee, you will immediately lose your protected territory rights.
If at any point, you are (a) not current on your obligations owed to us, (b) not in compliance with your Franchise Agreement(s) or Development Agreement, or (c) not showing a good faith effort in trying secure and open your next scheduled studio, your territory and remaining development rights will be immediately terminated.
Deka Lash reserves the right to revise the above options at any time.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, a developer faces specific consequences for not paying the delayed opening fee. If a developer does not pay the delayed opening fee, stops the ACH transaction, informs Deka Lash in writing that they no longer want to be charged the fees, or after 12 months of paying the fee, the developer will immediately lose their protected territory rights.
In addition to losing protected territory rights, Deka Lash outlines further repercussions if a developer is not current on their obligations, not compliant with their agreements, or not showing a good faith effort to secure and open their next scheduled studio. In such cases, their territory and remaining development rights will be immediately terminated. Deka Lash retains the right to revise these options at any time.
This policy underscores the importance of adhering to the development schedule and financial obligations outlined in the Development Agreement. Prospective Deka Lash developers should carefully consider their ability to meet these requirements to avoid losing their protected territory and development rights.