To whom should a Deka Lash franchisee make their check for franchise fees or other payments?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Due to our financial condition, the Virginia State Corporation Commission's Division of Securities and Retail Franchising requires us to establish an escrow account for all initial franchise fees that we charge. You shall make your check for franchise fees or other payments to the depository (Truist Bank) and send the check to us. Within two business days of our receipt of the check, we will deposit the check into an escrow account that we have established with Truist.Bank.
When we complete all of our pre-opening obligations to you (listed in Item 11 of this Disclosure Document), we will request that you affirm, in writing, that we have completed those obligations and that you assent to release of the funds held in escrow. After receipt of authorization from the Commission, the depository shall release the funds held in escrow by the depository to us to be applied to your account with us.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the standard procedure is to make checks payable directly to Deka Lash. However, there's a specific exception for franchisees operating in Virginia. Due to Deka Lash's financial condition, the Virginia State Corporation Commission requires an escrow account for all initial franchise fees.
For Virginia franchisees, checks for franchise fees or other payments should be made out to Truist Bank, the designated depository. The franchisee is then required to send the check to Deka Lash. Deka Lash will then deposit the check into the escrow account within two business days of receipt.
These funds are held in escrow until Deka Lash fulfills its pre-opening obligations to the franchisee, as outlined in Item 11 of the FDD. Once these obligations are met, the franchisee must affirm in writing that Deka Lash has completed them and authorize the release of the funds. After the Virginia State Corporation Commission authorizes the release, Truist Bank will release the funds from escrow to Deka Lash, which will then be applied to the franchisee's account.