What does the Deka Lash initial franchise fee payment cover?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.17 All Other Rights Reserved. Except as provided in this Section 3 of this Agreement, the parties agree and acknowledge that the rights granted in this Agreement are non-exclusive and that we and our affiliates reserve all other rights not expressly granted to you herein.
4. FEES AND PAYMENTS
- 4.1 Initial Franchise Fee. The initial franchise fee is $59,900. If you purchase additional Franchised Business rights after the signing of your first Franchise Agreement with us, the initial franchise fee is $38,000 per Franchised Business provided the subsequent purchase occurs within five years of signing the first franchise agreement with us and you are current on your obligations to us. If you are acquiring an open and operating Franchised Business, the franchise fee is $19,900. If you fail to open the Franchise within the time limits expressed in the Franchise Agreement, we may terminate the Franchise Agreement and retain the entire Initial Franchise Fee. The initial franchise fee is fully earned and nonrefundable upon your signing of the franchise agreement and receipt of the funds by us.
- 4.2 Franchise Fee Considerations. This Franchise Fee is payment, in part, for expenses incurred by Franchisor, including marketing for franchisee, referral fees and commissions, sales expenses, administrative overhead, return on investment, costs related to the execution of this Agreement, legal, accounting and other professional fees and our lost or deferred opportunity to sell Franchises in your market area to others.
- 4.3 Operations Onboarding & First Studio Opening Support Fee. You must pay to us at the same time as the Initial Franchise Fee, an Operations Onboarding & First Studio Opening Support Fee of $5,450. This fee offsets our costs in supporting you and your operations staff through the onboarding process and supporting your efforts to find and develop your first site. The Operations Onboarding & First Studio Opening Support Fee is fully earned and non-refundable upon your signing of the Franchise Agreement and receipt of the funds by us. For your second and subsequent locations, you are not required to pay this fee.
- **4.4
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the initial franchise fee is $59,900. If a franchisee purchases additional franchise rights after signing their first agreement with Deka Lash, the initial franchise fee is $38,000 per franchise, provided the subsequent purchase occurs within five years of signing the first agreement and the franchisee is current on their obligations. If acquiring an already open and operating franchise, the fee is $19,900. This fee is fully earned and nonrefundable upon signing the franchise agreement and receipt of funds by Deka Lash. If the franchisee fails to open the franchise within the time limits expressed in the Franchise Agreement, Deka Lash may terminate the Franchise Agreement and retain the entire Initial Franchise Fee.
The initial franchise fee serves as payment for expenses incurred by Deka Lash. These expenses include marketing for the franchisee, referral fees and commissions, sales expenses, administrative overhead, return on investment, costs related to the execution of the Franchise Agreement, legal, accounting, and other professional fees. It also covers Deka Lash's lost or deferred opportunity to sell franchises in the franchisee's market area to others.
In addition to the initial franchise fee, a franchisee must also pay an Operations Onboarding & First Studio Opening Support Fee of $5,450 at the same time as the Initial Franchise Fee. This fee offsets Deka Lash's costs in supporting the franchisee and their operations staff through the onboarding process and supporting their efforts to find and develop their first site. This fee is also fully earned and non-refundable upon signing the Franchise Agreement and receipt of the funds by Deka Lash. This fee is not required for second and subsequent locations. Franchisees must also pay a Non-Refundable Training Fee of $3,750 at the same time as the Initial Franchise Fee. The Training Fee is non-refundable and non-transferable except to an entity owned by the same owners with the same ownership percentages.