For Deka Lash franchises in Hawaii, what pre-opening obligations must be completed before the initial fees are due?

According to Deka Lash's 2024 Franchise Disclosure Document, the standard Franchise Agreement is modified for franchisees in Hawaii regarding the payment of initial fees. Specifically, Deka Lash defers the payment of all initial fees until they have fulfilled all pre-opening obligations and the franchisee is open for business. This modification is designed to protect franchisees in Hawaii, ensuring that Deka Lash completes its responsibilities before requiring payment of the initial franchise fees.

This deferral of initial fees until pre-opening obligations are met and the business is open is a significant benefit for franchisees in Hawaii. It reduces the financial risk associated with starting a new franchise, as franchisees are not required to pay the initial fees until they are ready to begin operations. This arrangement ensures that Deka Lash is incentivized to provide the necessary support and fulfill its obligations in a timely manner.

This modification is formalized through a Hawaii addendum to the Franchise Agreement, which takes precedence over any conflicting terms in the standard agreement. This addendum underscores Deka Lash's commitment to complying with Hawaii's franchise laws and providing additional protections to its franchisees in the state. Prospective franchisees should carefully review the Hawaii addendum and the Franchise Agreement to fully understand their rights and obligations.