What is the Failure to Comply Fee for the third breach of the franchise agreement with Deka Lash?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Failure to Comply Fee | $500 for the first breach, $1,000 for the second breach, and $2,500 for the third breach and any other breaches. | On demand. | We may charge this fee if you breach any of the terms, conditions, or policies outlined in the franchise agreement or the operations manual, otherwise fail to comply with our standards and specifications, or use unauthorized products, equipment, or vendors. |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the Failure to Comply Fee increases with each subsequent breach of the franchise agreement. The fee is $500 for the first breach, $1,000 for the second breach, and $2,500 for the third breach and any subsequent breaches. This fee is due on demand.
Deka Lash may charge this fee if a franchisee violates any terms, conditions, or policies outlined in the franchise agreement or operations manual. It also applies to failures to comply with Deka Lash's standards and specifications, or the use of unauthorized products, equipment, or vendors.
For a prospective Deka Lash franchisee, this means that consistently adhering to the franchise agreement and operational standards is crucial to avoid incurring these fees. The increasing cost for repeated breaches highlights the importance Deka Lash places on compliance and the potential financial impact of failing to meet their requirements.