What is the opening deadline extension fee for a Deka Lash franchise?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
ibit J contains the Table of Contents to the Operations Manual, which presently contains 198 pages.
Length of Time Before Opening:
We estimate that it should take you approximately 9 to 12 months to open your studio. You must be open and operational within 365 days from the Effective Date of your Franchise Agreement. Factors that may affect this time include: arranging for the training of owners and employees, meeting business permit and license requirements, finding a suitable site, negotiating a lease, obtaining any needed licenses or permits, performing 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, franchisees are expected to open their studio within 365 days from the effective date of the Franchise Agreement. If a franchisee fails to meet this deadline, they must pay an Opening Deadline Extension Fee. This fee amounts to $500 for each month, or any portion thereof, that the opening is delayed beyond the initial 365-day period.
The FDD states that Deka Lash will allow franchisees to pay this extension fee for up to 12 months. This provides a maximum extension period of one year beyond the original deadline, during which the franchisee can work to open their studio while remaining in compliance with the franchise agreement.
However, the extension is conditional. Deka Lash retains the right to terminate the Franchise Agreement and keep the entire Initial Franchise Fee if the franchisee fails to pay the Opening Deadline Extension Fee, stops or refutes the ability to debit or ACH this transaction, notifies Deka Lash in writing that they no longer want to be charged the delayed opening fees, or fails to open the franchise unit after 12 months of paying the Opening Deadline Extension Fee. Additionally, Deka Lash has no obligation to refund any portion of products & inventory purchased or other amounts paid to them, their affiliates, or third parties.