What is the Opening Deadline Extension Fee for Deka Lash?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
e, medium, and location (including online or in person) are subject to change (as reflected in the Operations Manual) as deemed necessary by us. You are responsible for all costs you or your employees incur to attend such training, including training fees, travel, lodging, meals, and wages.
4.10 Opening Deadline Extension Fee. 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 fee, or (d) after a period of 12 months of paying the Opening Deadline Extension
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, if a franchisee is delayed in opening their studio beyond the initial 365 days allowed in the agreement, they must pay an Opening Deadline Extension Fee. This fee amounts to $500 for each month, or any portion of a month, that the opening is delayed.
Deka Lash allows franchisees to pay this extension fee for up to 12 months. However, there are specific consequences if the franchisee fails to adhere to the payment terms. If the franchisee does not pay the Opening Deadline Extension Fee, stops or refutes the ability to debit or ACH the transaction, or notifies Deka Lash in writing that they no longer want to be charged the fee, or fails to open the franchise unit after 12 months of paying the fee, Deka Lash has the right to terminate the Franchise Agreement.
In the event of termination due to non-compliance with the Opening Deadline Extension Fee terms, Deka Lash will retain the entire Initial Franchise Fee. Furthermore, Deka Lash is not obligated to refund any portion of the products and inventory purchased by the franchisee or any other amounts paid to Deka Lash, its affiliates, or third parties. This highlights the importance of adhering to the development schedule and managing the opening timeline effectively to avoid incurring these fees and potential termination of the franchise agreement.