For how many months can a Deka Lash franchisee pay the Opening Deadline Extension Fee?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
the build out, obtaining furniture and equipment, hiring and training staff, obtaining an occupancy permit, and your personal operational If you fail to open the Franchise within this time limit, you must pay us an Opening Deadline Extension Fee of $500 for each month, or portion of month, that you are delayed in opening your studio beyond the 365 days allowed in this agreement. We will allow you to pay an Opening Deadline Extension Fee for up to 12 months. If at any point you (a) do not pay your Opening Deadline Extension Fee, (b) stop or refute our ability to debit or ACH this transaction, (c) notify us, in writing, that you no longer want to be charged the delayed opening fees, or (d) after a period of 12 months of paying the Opening Deadline Extension Fee you fail to open the franchise unit, we may terminate the Franchise Agreement and will retain the entire Initial Franchise Fee. Additionally, we have n
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–40)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a franchisee can pay the Opening Deadline Extension Fee for up to 12 months. This fee applies if the Deka Lash studio is not open within 365 days from the effective date of the Franchise Agreement. The fee is $500 for each month, or portion thereof, that the opening is delayed.
However, Deka Lash outlines specific conditions under which they may terminate the Franchise Agreement even within those 12 months. These conditions include if the franchisee does not pay the Opening Deadline Extension Fee, stops or refutes Deka Lash's ability to debit or ACH the transaction, or notifies Deka Lash in writing that they no longer want to be charged the delayed opening fees.
If, after the 12-month extension period, the Deka Lash franchise unit is still not open, Deka Lash may terminate the Franchise Agreement. In the event of termination, Deka Lash will retain the entire Initial Franchise Fee and has no obligation to refund any portion of products and inventory purchased or other amounts paid to them, their affiliates, or third parties. This highlights the importance of adhering to the opening timeline and managing potential delays effectively to avoid financial losses.