What is the estimated low cost for Insurance & Permits 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 |
| 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 vendors |
| Management (Note 6) | |||||
| Rent & Security Deposits (Note 7) | $12,000 | $25,000 | As Arranged | Monthly | Landlord & Third- party suppliers |
| Signage (Note 8) | $5,000 | $10,000 | As Arranged | Before Opening | Third-party vendors |
| Furniture, Fixtures and Equipment | $60,000 | $86,000 | As Arranged | Before Opening | Third-party vendors |
| (Note 9) | |||||
| Flooring (Note 10) | $5,000 | $8,000 | As Arranged | Before Opening | Third-party vendors |
| Computers and Hardware (Note 11) | $2,000 | $5,000 | As Arranged | Before Opening | Third-party vendors |
| Start-up Supplies / Inventory (Note 12) | $13,500 | $13,500 | As Arranged | Before Opening | Us & Third-party vendors |
| Grand Opening / Marketing (Note 13) | $9,000 | $12,000 | As Arranged | Before Opening | Us & Third-party vendors |
| Insurance & Permits (Note 14) | $3,250 | $7,500 | As Arranged | As incurred | Third-party vendors |
| Professional Fees (Note 15) | $1,250 | $3,750 | As Arranged | As incurred | Third-party vendors |
| Utilities (Note 16) | $500 | $1,500 | As Arranged | As incurred | Third-party utilities |
| Payroll (Note 17) | $23,000 | $35,000 | As Arranged | Bi-Weekly or Semi- Monthly | Employees |
| Additional Funds (Note 18) | $6,000 | $15,000 | As Arranged | As incurred | Us & Third-party Vendors |
| TOTAL (Note 19) | $285,900 | $449,350 |
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 cost for insurance and permits is $3,250. This figure is part of the initial investment needed to start a Deka Lash franchise. The high end of the estimated range for insurance and permits is $7,500. These fees are paid to third-party vendors and are incurred as needed.
The FDD specifies the types of insurance a franchisee will need, including Commercial General Liability, Rented Premises and Fire Legal Liability, Automobile, and Workers Compensation/Employers Liability. The cost of permits will depend on local regulations and requirements.
As with many of the initial costs, the actual amount spent on insurance and permits can vary. Prospective franchisees should obtain quotes from insurance providers and investigate local permit costs to develop a more precise estimate for their specific location. This will help in accurately forecasting the total initial investment.