What is the development fee for an Area Development Agreement with Deka Lash to operate 5 franchised businesses?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
follows:
| Number of Franchised Businesses | Development Fee |
|---|---|
| 2 Franchised Businesses | $97,900 |
| 3 Franchised Businesses | $114,900 |
| 4 Franchised Businesses | $148,900 |
| 5 Franchised Businesses | $179,900 |
| 6 Franchised Businesses | $210,900 |
| 7 Franchised Businesses | $241,900 |
| 8 Franchised Businesses | $272,900 |
| 9 Franchised Businesses | $303,900 |
| 10 Franchised Businesses |
Source: Item 5 — INITIAL FEES (FDD pages 12–15)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the development fee for an Area Development Agreement to operate 5 franchised businesses is $179,900. This fee is in lieu of the initial franchise fee typically charged for a single-unit franchise. Deka Lash may offer Area Development Agreements to qualified candidates, allowing them to develop and operate multiple franchise locations within a specified timeframe. The number of franchises that can be included in an Area Development Agreement currently ranges from 2 to 10.
The development fee is fully earned and non-refundable upon signing the Development Agreement and receipt of the funds by Deka Lash. This means that once the agreement is signed and the fee is paid, the franchisee cannot get a refund under any circumstances, even if they later decide not to proceed with the development.
It's important to note that if the franchisee fails to complete the initial training program or fails to open any of the franchises within the time limits specified in the Area Development Agreement, Deka Lash has the right to terminate the agreement and retain the entire development fee. This highlights the importance of carefully reviewing the terms of the Area Development Agreement and ensuring that the franchisee has the resources and capabilities to meet the development schedule. Prospective franchisees should carefully consider these factors and seek professional advice before entering into an Area Development Agreement with Deka Lash.