What does the Deka Lash initial franchise fee cover?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
The undersigned Franchisee hereby acknowledges and agrees that DL Franchising, LLC d/b/a Deka Lash has fulfilled its pre-opening obligations to the Franchisee as stated in Item 11 of the Deka Lash Franchise Disclosure Document, the Franchisee is now open for business, and the Franchisee hereby tenders to Deka Lash the initial franchise fee due and owing under its Franchise Agreement.
I have investigated the designated search area in which I am to establish and operate my Franchised Business and the laws, rules and regulations applicable thereto and represent that the market in the area is reasonable, suitable locations are and shall be available for the operation of a Deka Lash franchise, and the Initial Franchise Fee represents fair consideration for the opportunity to establish and operate such franchise.
I acknowledge that if there is any applicable laws, rules and regulations (including the federal, state, city or locality laws or rules) such that it makes it illegal, fiscally impractical, or otherwise impractical to offer services provided in association with operating a Deka Lash facility, that I will not be refunded any of the initial franchise fee, the Development Fee associated with Area Development Agreement (where appropriate), the Non-Refundable Training Fee and/or the Operations Onboarding & First Studio Opening Support Fees paid for any opened or unopened territories.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
Based on the 2024 Deka Lash Franchise Disclosure Document, the initial franchise fee covers Deka Lash fulfilling its pre-opening obligations to the franchisee as stated in Item 11 of the FDD. The franchisee acknowledges that the initial franchise fee represents fair consideration for the opportunity to establish and operate a Deka Lash franchise. The franchisee also confirms they have investigated the designated search area and applicable laws, rules, and regulations.
However, the FDD states that the initial franchise fee will not be refunded if any applicable laws, rules, and regulations make it illegal, fiscally impractical, or otherwise impractical to offer services associated with operating a Deka Lash facility. This includes federal, state, city, or locality laws or rules. This non-refundable clause also applies to the Development Fee associated with Area Development Agreements, the Non-Refundable Training Fee, and the Operations Onboarding & First Studio Opening Support Fees paid for any opened or unopened territories.
In summary, while the FDD excerpts confirm that the initial franchise fee provides the right to open a Deka Lash franchise, it does not specify the exact services or support it covers. Instead, it emphasizes the franchisee's responsibility to investigate the business environment and acknowledges the non-refundable nature of the fee under certain conditions. A prospective franchisee should carefully review Item 11 of the FDD, as referenced in the receipts, to fully understand what pre-opening obligations Deka Lash commits to fulfilling in exchange for the initial franchise fee.