Is the initial franchise fee for a Deka Lash franchise refundable?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Except as otherwise described in this Item 5, the initial fees are uniform and non-refundable.
Financing
We disclose financing terms available for certain expansion territory purchases by existing franchisees in Item 10.
Source: Item 5 — INITIAL FEES (FDD pages 12–15)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the initial franchise fee is generally non-refundable. For a single-unit franchise, the initial franchise fee is $59,900, or $19,900 if acquiring an already open and operating franchised business. These fees are fully earned and non-refundable upon signing the franchise agreement and Deka Lash receiving the funds. If a franchisee fails to complete the initial training program or open the franchise within the specified time, Deka Lash can terminate the agreement and retain the entire initial franchise fee.
For area developers, a development fee is paid instead of the initial franchise fee, and this fee is also fully earned and non-refundable upon signing the Area Development Agreement and receipt of funds by Deka Lash. If the area developer fails to complete the initial training or open the franchises within the agreed time limits, Deka Lash may terminate the agreement and retain the entire development fee. There are also other fees, such as the Operations Onboarding & First Studio Opening Support Fee of $5,450 and the Non-Refundable Training Fee of $3,750, which are also non-refundable.
However, there is an exception: Deka Lash offers a 25% discount on the initial franchise fee for the first Franchise Agreement signed by an honorably discharged veteran of the U.S. military that purchases through the VetFran program. Despite this discount, the fees remain non-refundable except as otherwise described in Item 5 of the FDD. This means that under most circumstances, a Deka Lash franchisee should expect that the initial franchise fee and other associated fees are non-refundable, highlighting the importance of careful consideration and due diligence before signing any agreements or transferring funds.