What is the deadline from the Effective Date of the Franchise Agreement to open a Deka Lash studio?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
ibit J contains the Table of Contents to the Operations Manual, which presently contains 198 pages.
Length of Time Before Opening:
We estimate that it should take you approximately 9 to 12 months to open your studio. You must be open and operational within 365 days from the Effective Date of your Franchise Agreement. Factors that may affect this time include: arranging for the training of owners and employees, meeting business permit and license requirements, finding a suitable site, negotiating a lease, obtaining any needed licenses or permits, performing the build out, obtaining furniture and equipment, hiring and training staff, obtaining an occupancy permit, and your personal operational If you fail to open the Franchise within this time limit, you must pay us an Opening Deadline Extension Fee of $500 for each month, or portion of month, that you are delayed in opening your studio beyond the 365 days allowed in this agreement. We will allow you to pay an Opening Deadline Extension Fee for up to 12 months. If at any point you (a) do not pay your Opening Deadline Extension Fee, (b) stop or refute our ability to debit or 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 Opening Deadline Extension Fee you fail to open the franchise unit, we may terminate the Franchise Agreement and will retain the entire Initial Franchise Fee. Additionally, we have n
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–40)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees must open their studio within 365 days from the Effective Date of the Franchise Agreement. This means a prospective franchisee has approximately one year to secure a location, complete the build-out, hire staff, and begin operations. Deka Lash estimates the entire process will take between 9 to 12 months.
If a Deka Lash franchisee fails to open within the initial 365-day period, they can request an extension by paying an Opening Deadline Extension Fee of $500 for each month (or portion thereof) of delay. This extension can be granted for up to 12 months, providing additional time to address any setbacks in the opening process.
However, there are significant financial risks associated with delays. If the franchisee does not pay the extension fee, stops payment, indicates they no longer want to be charged, or fails to open after 12 months of paying the extension fee, Deka Lash has the right to terminate the Franchise Agreement and retain the entire Initial Franchise Fee. Additionally, Deka Lash is not obligated to refund any money spent on products, inventory, or other amounts paid to them or third parties. This highlights the importance of careful planning and diligent execution to avoid potential delays and financial losses.