What is the maximum duration for which Deka Lash will assess the Delayed Opening Fee?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
dates by 6 months. Pursuant to COMAR 02.02.08.16L, the general release required as a condition of sale, or transfer, shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
- b) Delayed Opening Fee Assessed (for up to 12 months). For each month you are behind on your Development Schedule (Extension with Release excluded), you will be charged a Delayed Opening Fee of $500 for each territory when that territory is due. This Development Schedule Extension Fee must be paid to us with our then-current royalty collections process. For each month this is paid, your development schedule for each of
- those unit rights will be extended by one month. We will allow you to pay a Delayed Opening Fee for up to 12 months.
- c) Loss of Protected Territory and Transferability. If at any point you (a) do not pay your delayed opening fee, (b) stop or refute our ability to 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 t
Source: Item 12 — TERRITORY (FDD pages 40–44)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, if an area developer fails to meet their development schedule but is current on their obligations, in compliance with their agreements, and showing a good faith effort to open their next studio, Deka Lash may assess a Delayed Opening Fee. This fee is $500 per month for each territory that is behind schedule.
Deka Lash will allow the area developer to pay this Delayed Opening Fee for up to 12 months. For each month the fee is paid, the development schedule for the unit rights will be extended by one month.
However, the area developer can lose their protected territory rights and transferability rights if they (a) do not pay the delayed opening fee, (b) stop or refute Deka Lash's ability to ACH the transaction, (c) notify Deka Lash in writing that they no longer want to be charged the delayed opening fees, or (d) after a period of 12 months of paying the delayed opening fee.