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In Hawaii, is the Deka Lash development fee collected all at once, or is it pro-rated?

Deka_Lash Franchise · 2024 FDD

Answer from 2024 FDD Document

HAWAII ADDENDUM TO THE AREA DEVELOPMENT AGREEMENT

If any of the terms of the Area Development Agreement are inconsistent with the terms below, the terms below control.

    1. Initial Fee Deferral. The Area Development Agreement is modified to also provide that we will collect the development fee on a pro-rated basis as each outlet is opened under the development agreement.

Source: Item 23 — RECEIPT (FDD pages 63–234)

What This Means (2024 FDD)

According to the 2024 Deka Lash Franchise Disclosure Document, the development fee in Hawaii is collected on a pro-rated basis. Specifically, the Hawaii Addendum to the Area Development Agreement states that Deka Lash will collect the development fee as each outlet is opened under the development agreement. This modification ensures that franchisees in Hawaii do not have to pay the entire development fee upfront.

This pro-rated payment structure can significantly lower the initial financial burden for franchisees in Hawaii, as they only pay a portion of the development fee as each new location opens. This can make it easier for franchisees to manage their cash flow and reduce the risk associated with opening multiple locations. Instead of paying the full development fee upfront for all planned locations, the franchisee can spread the payments out over time as each location becomes operational.

It's important for prospective Deka Lash franchisees in Hawaii to understand the terms of the Area Development Agreement and the Hawaii Addendum to ensure they are aware of the pro-rated payment schedule for the development fee. This arrangement may differ from other states, so franchisees should carefully review all addenda and agreements specific to their location.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.