What is the Failure to Comply Fee related to for a Deka Lash franchise?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
e this Secret Shopper Fee as the costs to evaluate your location changes.
- 4.31 No Refunds if Terminated. If your Franchise Agreement is terminated for any reason, we or our affiliates have no obligation to refund any portion of the purchase price for products, inventory, or other amounts paid by you.
- 4.32 Failure to Comply Fee. You agree that it is in the best interests of the System that all franchisees comply with the standards and specifications outlined in the Operations Manual. Accordingly, if you breach any provision of this Agreement (whether it be curable or incurable), breach any of the terms, conditions, or policies outlined in the Operations Manual, otherwise fail to comply with our standards and specifications, or use unauthorized products, suppliers, or
vendors, in addition to all other rights or remedies we may have under this Agreement and applicable law, we shall have the right to charge to you a Failure to Comply Fee. In addition to your cost to come into compliance, you shall pay us a Failure to Comply Fee of $500 for your first breach, $1,000 for your second breach, and $2,500 for your third breach and any other breach thereafter. Payment of any Failure to Comply Fee shall be due immediately upon your receipt of
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the Failure to Comply Fee is related to ensuring that all franchisees adhere to the standards and specifications outlined in the Operations Manual. If a franchisee breaches any provision of the Franchise Agreement, violates the terms, conditions, or policies in the Operations Manual, fails to comply with Deka Lash's standards and specifications, or uses unauthorized products, suppliers, or vendors, Deka Lash has the right to charge this fee.
The Failure to Comply Fee is in addition to any other rights or remedies Deka Lash may have under the Franchise Agreement and applicable law. The fee structure is $500 for the first breach, $1,000 for the second breach, and $2,500 for the third breach and any subsequent breaches. Payment is due immediately upon receipt of notice from Deka Lash.
This fee is intended to help cover Deka Lash's administrative and corporate costs associated with addressing the breach and implementing a remedy. It's important to note that paying the Failure to Comply Fee does not prevent Deka Lash from terminating the Franchise Agreement if termination is permissible under the agreement's terms. This provision incentivizes franchisees to maintain compliance with Deka Lash's operational standards and protects the integrity of the Deka Lash system.