What fee is waived when a Deka Lash developer is granted a six-month extension to their development schedule?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
obligations owed to us, (b) in compliance with your franchise agreement(s) and (c) showing a good faith effort in trying secure and open your next scheduled studio, then the following will occur:
- a) Extension with Release (6 months). Per written notice to us and execution of a general release in our favor, we will grant you a one-time, six-month extension to your development schedule with no Delayed Opening Fee. This six-month extension can only be used once during your development agreement and delays all subsequent development dates by 6 months.
- b) Delayed Opening Fee Assessed (for up to 12 months). For each month you are behind on your Development Schedule (Extension with Release excluded), you will be charged a Delayed Opening Fee of $500 for each studio when that studio becomes due. For example, if you have 3 undeveloped units behind schedule, your Delayed Opening Fee will be $1,500 per month. This Development Schedule Extension Fee must be paid to us with our then-curre
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, if a Deka Lash developer is behind on their development schedule, they may be charged a Delayed Opening Fee of $500 per month for each studio that is behind schedule. However, this fee is not charged if the developer is granted an extension with a release. The document does not specify what fee is waived when a Deka Lash developer is granted a six-month extension to their development schedule.
Instead, the document outlines the consequences of not paying the Delayed Opening Fee. If a developer does not pay the fee, stops the ACH transaction, or indicates they no longer want to be charged, they will lose their protected territory rights. This highlights the importance of adhering to the development schedule or securing an extension with a release to avoid these penalties.
Prospective Deka Lash developers should inquire with the franchisor about the specific conditions under which a six-month extension is granted and whether any fees, besides the Delayed Opening Fee, are waived or altered during the extension period. Understanding the full financial implications of development delays and extension options is crucial for making informed investment decisions.