What happens if a Deka Lash franchisee does not pay the Opening Deadline Extension Fee?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
e, medium, and location (including online or in person) are subject to change (as reflected in the Operations Manual) as deemed necessary by us. You are responsible for all costs you or your employees incur to attend such training, including training fees, travel, lodging, meals, and wages.
4.10 Opening Deadline Extension Fee. You must pay us an Opening Deadline Extension Fee of $500 for each month, or portion of month, that you are delayed in opening your studio beyond the 365 days allowed in this Agreement. We will allow you to pay an Opening Deadline Extension Fee for up to 12 months. If at any point you (a) do not pay your Opening Deadline Extension Fee, (b) stop or refute our ability to debit or ACH this transaction, (c) notify us, in writing,
that you no longer want to be charged the delayed opening fee, or (d) after a period of 12 months of paying the Opening Deadline Extension
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, if a franchisee does not pay the Opening Deadline Extension Fee, several consequences may occur. Deka Lash allows franchisees to pay a $500 Opening Deadline Extension Fee for each month they are delayed in opening their studio beyond the initial 365 days, for up to 12 months.
If a Deka Lash franchisee does not pay the Opening Deadline Extension Fee, or if they stop or refute the ability for Deka Lash to debit the transaction, or if they notify Deka Lash in writing that they no longer want to be charged the fee, or if they fail to open the franchise unit after 12 months of paying the fee, Deka Lash may terminate the Franchise Agreement.
Furthermore, if the agreement is terminated, Deka Lash will retain the entire Initial Franchise Fee. Additionally, Deka Lash has no obligation to refund any portion of products and inventory purchased by the franchisee or other amounts paid to Deka Lash, its affiliates, or third parties. This could result in a significant financial loss for the franchisee.