What is the estimated low amount for the initial franchise fee for a Deka Lash franchise?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fee | Estimated | Estimated | Method of | When Due | To Whom Payment |
|---|---|---|---|---|---|
| Amount Low | Amount High | Payment | is to be Made | ||
| Initial Franchise Fee (Note 1) | $59,900 | $59,900 | Wire / ACH | Upon entering into franchise agreement | Us |
Table 1 Notes
None of the fees paid to us in this table are refundable. Whether fees paid to third parties are refundable would depend upon the policies of those third parties.
Note 1 – Initial Franchise Fee. We base the initial franchise fee on your acquisition of one territory. We offer a 25% discount for military veterans with proper honorable discharge documentation. If you are acquiring an open and operating Franchised Business, the initial franchise fee is $19,900.
If you have been a franchisee for at least 24 months, we may offer financing of up to 50% of the initial franchise fee of $38,000 for an additional expansion territory, at 10% per annum interest, repaid monthly over 60 months. If you financed $19,000 over 60 months at 10% per annum interest, your monthly payment would be approximately $404.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the initial franchise fee is estimated to be $59,900. This fee is based on acquiring one territory. The FDD specifies that this fee is generally non-refundable.
For military veterans with proper honorable discharge documentation, Deka Lash offers a 25% discount on the initial franchise fee. If a franchisee is acquiring an already open and operating Deka Lash business, the initial franchise fee is reduced to $19,900.
Furthermore, Deka Lash may offer financing of up to 50% of an initial franchise fee of $38,000 for an additional expansion territory to franchisees who have been with the company for at least 24 months. This financing comes with a 10% annual interest rate, with monthly repayments over 60 months. For example, financing $19,000 over 60 months at a 10% annual interest rate would result in monthly payments of approximately $404.
Prospective franchisees should carefully consider these initial fees and financing options, and also take into account their eligibility for discounts or alternative fee structures based on their individual circumstances.