To whom is the initial franchise fee paid when opening a Deka Lash franchise?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
ESTMENT FRANCHISE AGREEMENT
| Fee | Estimated | Estimated | Method of | When Due | To Whom Payment |
|---|---|---|---|---|---|
| Amount Low | Amount High | Payment | is to be Made | ||
| Initial Franchise Fee (Note 1) | $59,900 | $59,900 | Wire / ACH | Upon entering into franchise agreement | Us |
| Operations Onboarding & First Studio | $5,450 | $5,450 | Wire / ACH | Upon entering into | Us |
| Opening Support Fee (Note 2) | franchise agreement | ||||
| Initial Staff Training & Certification | $3,750 | $3,750 | Wire / ACH | Upon entering into | Us |
| (Note 3) | franchise agreement | ||||
| New Franchisee Training Travel, | $300 | $3,000 | As Arranged | Before Opening | Third-party vendors |
| Meals & Lodging (Note 4) | |||||
| Design / Architectural Plans (Note 5) | $1,000 | $5,000 | As Arranged | Before Opening | Third-party vendors |
| Leasehold Improvements & Project | $75,000 | $150,000 | As Arranged | Before Opening | Third-party vendors |
| Management (Note 6) | |||||
| Rent & Security Deposits (Note 7) | $12,000 | $25,000 | As Arranged | Monthly | Landlord & Third- |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the initial franchise fee is paid directly to Deka Lash. The standard initial franchise fee is $59,900, payable via wire or ACH transfer upon entering into the franchise agreement.
Notably, the FDD outlines a reduced initial franchise fee of $19,900 if a franchisee is acquiring an already operational Deka Lash franchise. Military veterans may also be eligible for a 25% discount on the initial franchise fee, provided they can supply proper honorable discharge documentation.
For franchisees pursuing an Area Development Agreement, which grants the right to open multiple Deka Lash locations, the initial franchise fee for the first location is incorporated into the Area Development Fee. This fee ranges from $97,900 for two territories up to $334,900 for ten territories and is also paid to Deka Lash via wire or ACH upon signing the Area Development Agreement.