What is the Delayed Opening Fee charged by Deka Lash for each month a developer is behind schedule?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
neral release required as a condition of sale, or transfer, shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
- b) Delayed Opening Fee Assessed (for up to 12 months). For each month you are behind on your Development Schedule (Extension with Release excluded), you will be charged a Delayed Opening Fee of $500 for each territory when that territory is due. This Development Schedule Extension Fee must be paid to us with our then-current royalty collections process. For each month this is paid, your development schedule for each of
- those unit rights will be extended by one month. We will allow you to pay a Delayed Opening Fee for up to 12 months.
- c) Loss of Protected Territory and Transferability. 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 t
Source: Item 12 — TERRITORY (FDD pages 40–44)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, area developers who fail to meet their development schedule may incur a Delayed Opening Fee. If the developer is current on their obligations to Deka Lash, compliant with their franchise agreements, and demonstrating a good faith effort to open their next scheduled studio, they may be charged this fee.
The Delayed Opening Fee is $500 for each territory for each month the developer is behind schedule. This fee is charged for each territory when that territory is due to open. The fee is collected using Deka Lash's then-current royalty collections process. For each month the fee is paid, the development schedule for those unit rights will be extended by one month.
Deka Lash allows developers to pay the Delayed Opening Fee for up to 12 months. However, if the developer fails to pay the fee, stops the ACH payments, notifies 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 and all accompanying transferability rights. Deka Lash also retains all rights to approve the studio location(s).