What is the estimated low amount for Operations Onboarding & First Studio for a Deka Lash franchise?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
ESTMENT FRANCHISE AGREEMENT
| 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 |
| Operations Onboarding & First Studio | $5,450 | $5,450 | Wire / ACH | Upon entering into | Us |
| Opening Support Fee (Note 2) | franchise agreement | ||||
| Initial Staff Training & Certification | $3,750 | $3,750 | Wire / ACH | Upon entering into | Us |
| (Note 3) | franchise agreement | ||||
| New Franchisee Training Travel, | $300 | $3,000 | As Arranged | Before Opening | Third-party vendors |
| Meals & Lodging (Note 4) | |||||
| Design / Architectural Plans (Note 5) | $1,000 | $5,000 | As Arranged | Before Opening | Third-party vendors |
| Leasehold Improvements & Project | $75,000 | $150,000 | As Arranged | Before Opening | Third-party ve |
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 estimated low amount for the Operations Onboarding & First Studio Opening Support Fee is $5,450. This fee is only paid for the first studio a franchisee opens.
This fee is intended to cover Deka Lash's costs for supporting the franchisee and their operations staff through the onboarding process. It also supports the franchisee's efforts in finding and developing their first site.
The FDD specifies that the Operations Onboarding & First Studio Opening Support Fee is considered fully earned and is non-refundable once the Franchise Agreement is signed and Deka Lash receives the funds. This means that if a prospective franchisee signs the agreement and pays the fee but is later unable to open their studio, they will not receive a refund of this $5,450. This is a standard practice in franchising, as these initial fees compensate the franchisor for the initial work and resources expended in setting up the franchisee.