factual

When does the Deka Lash opening deadline extension fee automatically begin?

Deka_Lash Franchise · 2024 FDD

Answer from 2024 FDD Document

Number of Franchised Businesses Development Fee
2 Franchised Businesses $97,900
3 Franchised Businesses $114,900
4 Franchised Businesses $148,900
5 Franchised Businesses $179,900
6 Franchised Businesses $210,900
7 Franchised Businesses $241,900
8 Franchised Businesses $272,900
9 Franchised Businesses $303,900
10 Franchised Businesses $334,900

The Development Fee is fully earned and non-refundable under any circumstances upon signing of the Development Agreement and receipt of the funds by us.

If you fail to successfully complete the initial training program or fail to open any of the Franchises within the time limits expressed in the Area Development Agreement, we may terminate the Area Development Agreement and retain the entire Development Fee.

Additional Unit Costs

If you purchase additional Franchised Business rights after the signing of the Franchise Agreement and/or Area Development Agreement, the price is $38,000 per Franchised Business.

Extension Fees

We reserve the right to approve and charge you a $500 per month fee to temporarily extend the opening date of your franchise beyond the 365 days allowed by the franchise agreement and a $500 per month fee to temporarily extend the development timeline in the Area Development Agreement. This fee is fully earned and nonrefundable when paid.

Operations Onboarding & First Studio Opening Support

Additionally, 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 get your first studio open. 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 studios, you are not required to pay an Operations Onboarding & First Studio Opening Support Fee. Additionally included in this fee is the tuition cost for two attendees for our initial owner training, Deka U.

Initial Lash Artist Training

Additionally, for initial training at your first location, you must pay to us at the same time as the Initial Franchise Fee, a Non-Refundable Training Fee of $3,750. This Non-Refundable Training Fee is to offset the expected costs for the initial Lash Artist training for your staff. The Training Fee is non-refundable and non-transferable except to an entity owned by the same owners with the same ownership percentages. These trainings are generally offered at your franchise location. For your second and subsequent locations, you are not required to submit a Non-Refundable Training Fee, however you must still pay for and otherwise reimburse us for any training we provide and any related out-of-pocket travel costs.

Inventory and Supplies

You must also buy an opening package of inventory and supplies from us, our affiliate, DL Products, LLC, and/or third parties, that costs approximately $13,500 for initial inventory and supplies to begin operation of the franchise, according to our current standards and specifications outlined from time to time in the Operations Manual. Neither we nor our affiliate finance any portion of your purchases. Payment is due when you order the relevant inventory and supplies from our affiliate and is non-refundable. We reserve the right to require you to process some or all product purchases through automatic account withdrawal or electronic funds transfer processes we designate and outline in the Operations Manual.

If your Franchise Agreement or Area Development Agreement is terminated (whether for your failure to commence operations, failure to successfully complete initial training program, or for any other reason), we or our affiliates have no obligation to refund any portion of the purchase price for products, supplies, or other amounts paid by you.

Veterans Discount

We offer a 25% discount on the Initial Franchise Fee for the first Franchise Agreement signed by an honorably discharged veteran of the U.S. military that purchases through the VetFran program.

Uniform and Non-Refundable

Except as otherwise described in this Item 5, the initial fees are uniform and non-refundable.

Financing

We disclose financing terms available for certain expansion territory purchases by existing franchisees in Item 10.

ITEM 6 OTHER FEES

| Fee

Source: Item 6 — OTHER FEES (FDD pages 15–23)

What This Means (2024 FDD)

Based on the 2024 Deka Lash Franchise Disclosure Document, if a franchisee is unable to open their studio by the agreed-upon deadline, an extension may be granted. However, this extension is not automatic and requires Deka Lash's approval.

According to the FDD, the opening deadline extension fee of $500 per month begins accruing automatically on the first day following the original scheduled opening date. This means that if a franchisee's studio was initially slated to open on June 1st but is not ready, the extension fees start accumulating from June 2nd onward, assuming an extension is granted.

It's important to note that the extension is not guaranteed, and Deka Lash retains the discretion to deny the request. Additionally, franchisees are responsible for paying the extension fee for each month the opening is delayed, which can add a significant cost to the initial investment. Franchisees should, therefore, make every effort to meet the original opening deadline to avoid these additional expenses.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.