For the Deka Lash financial performance representation, what is the minimum operational time required for a franchise studio location to be included in the representation?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Here we set forth a historic representation of our franchise studio locations that were open and in operation for at least 12 months as of December 31, 2023. We had 130 open franchised locations as of December 31, 2023, 109 of which were open and in operation for 12 months or more as of December 31, 2023, and which are included in the table below.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 55–57)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the financial performance representation includes data from franchise studio locations that were open and in operation for at least 12 months as of December 31, 2023. This means that only studios with a full year of operating history were considered for inclusion in the financial performance data presented.
This requirement ensures that the financial data presented is based on a reasonable period of operation, providing prospective franchisees with a more stable and representative view of potential earnings. By excluding studios that have been open for less than 12 months, Deka Lash aims to avoid skewing the data with initial startup fluctuations or seasonal variations that might not accurately reflect long-term performance.
As of December 31, 2023, Deka Lash had 130 open franchised locations, but only 109 of these met the 12-month operational requirement and were included in the financial performance representation. This distinction is important for prospective franchisees to understand, as it clarifies that the financial data is based on a subset of the total franchise network, specifically those with established operating histories.