What is the development fee for a Deka Lash franchise if you plan to open 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 opening 5 franchised businesses is $179,900. This fee is in lieu of the initial franchise fee and grants the area developer the right to develop and operate a specific number of Deka Lash franchises over a defined period, as detailed in the Area Development Agreement.
The Development Fee is paid when signing the Area Development Agreement and is fully earned and non-refundable once Deka Lash receives the funds. If the franchisee fails to complete the initial training program or open the franchises within the agreed timeframe, Deka Lash has the right to terminate the Area Development Agreement and retain the entire Development Fee.
This fee structure is common in area development franchise agreements, where franchisees commit to opening multiple units. The non-refundable nature of the fee emphasizes the importance of careful planning and commitment from the franchisee. Prospective franchisees should carefully review the Area Development Agreement (Exhibit C) to understand all obligations and timelines associated with developing multiple Deka Lash locations.