What are all the fees a Deka Lash franchisee might pay before opening, considering Item 5 and Item 7?
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 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 | #### Table 1 Notes |
None of the fees paid to us in this table are refundable. Whether fees paid to third parties are refundable would depend upon the policies of those third parties.
Note 1 – Initial Franchise Fee. We base the initial franchise fee on your acquisition of one territory. We offer a 25% discount for military veterans with proper honorable discharge documentation. If you are acquiring an open and operating Franchised Business, the initial franchise fee is $19,900.
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, franchisees can expect to pay several fees before opening their studio. The initial franchise fee is $59,900, but veterans with honorable discharge documentation receive a 25% discount. If acquiring an already operating franchise, the initial fee is $19,900. Franchisees also pay a $5,450 Operations Onboarding & First Studio Opening Support Fee, which covers the cost of onboarding and initial studio opening support, as well as tuition for two attendees at Deka U training. A Non-Refundable Training Fee of $3,750 covers initial lash artist training for staff at the first location.
Additional pre-opening costs include travel, meals, and lodging for training, estimated between $300 and $3,000. Design and architectural plans range from $1,000 to $5,000, while leasehold improvements and project management can cost between $75,000 and $150,000. Rent and security deposits are estimated at $12,000 to $25,000. Signage costs range from $5,000 to $10,000, and furniture, fixtures, and equipment range from $60,000 to $86,000. Flooring is estimated to cost between $5,000 and $8,000, while computers and hardware range from $2,000 to $5,000.
Franchisees must purchase an opening package of inventory and supplies, costing approximately $13,500. Grand opening and marketing expenses range from $9,000 to $12,000. Insurance and permits are estimated between $3,250 and $7,500, and professional fees range from $1,250 to $3,750. Utility costs before opening range from $500 to $1,500, and payroll expenses are estimated between $23,000 and $35,000. Additional funds needed before opening range from $6,000 to $15,000. These pre-opening costs contribute to a total estimated initial investment ranging from $285,900 to $449,350. Note that none of the fees paid to Deka Lash are refundable.