What methods of payment are acceptable for the Area Development Fee for a Deka Lash franchise?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fee (Note 1) | Estimated | Estimated | Method of | When Due | To Whom |
|---|---|---|---|---|---|
| Amount Low | Amount High | Payment | Payment is to be Made | ||
| Area Development Fee (Note 2) | $97,900 | $334,900 | Wire / ACH | Upon entering into Area Development Agreement | Us |
| Initial Investment for | $226,000 | $389,450 | See Chart above. | ||
| Your Initial Franchised | |||||
| Business (Note 3) | |||||
| TOTAL (Note 4) | $323,900 | $724,350 |
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 acceptable methods of payment for the Area Development Fee are wire transfer and ACH (Automated Clearing House). The Area Development Fee ranges from $97,900 to $334,900, depending on the number of territories being developed. This fee is due upon entering into the Area Development Agreement with Deka Lash.
For a prospective Deka Lash area developer, understanding the payment methods and the amount due is crucial for financial planning. Knowing that wire transfer and ACH are the accepted methods allows the developer to prepare for the transaction and ensure funds are available through the appropriate channels. The Area Development Fee covers the right to open and operate between two and ten franchised businesses within a specific Development Area, as well as the cost of opening the first franchised business.
It's important to note that the Area Development Fee is non-refundable, so the prospective developer should conduct thorough due diligence before entering into the agreement. Additionally, the total initial investment for an Area Development Agreement, including the opening of the first franchised business, ranges from $323,900 to $724,350. This total does not include costs associated with opening subsequent locations, which will incur additional expenses. Franchisees should also be aware that these figures do not include royalties, Brand Development Fees, interest expense, depreciation, or taxes.