What is the Deka Lash opening deadline extension fee per month?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Гоо | Amount | Duo Dete | Domarka |
|---|---|---|---|
| Fee | Amount | Due Date | Remarks |
| Transfer Fee | $10,000 (complete transfer or transfer or transfer of a majority interest) per transaction. Selling franchisee is responsible for all applicable broker fees. | At the time you transfer the franchise or a majority ownership in it. | Transferee must be approved by us and you must be in compliance with your Franchise Agreement. No fee if transferred from individual to business entity owned by the same owners with the same ownership percentages. If deemed necessary, we can revise the transfer fee once a calendar year with a 30 days' |
| Audit Fee | Cost of the audit plus any shortfall amount found to be due. | On demand. | notice. Payable if audit discloses an underpayment of royalty or fee by 2% of more. |
| Opening Deadline Extension Fee | $500 per month (or portion of month) for which the deadline is extended. | Automatically begins on the first date of default, unless a lease is executed. | Payable for each month that you are granted an extension beyond the 365 days allowed in your franchise agreement, for up to 12 months. |
| Development | $500 per month per territory according to each territory's development deadline. | At time of extension to development schedule. | 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 the delayed opening fee, you will immediately lose your protected territory rights and all accompanying transfe |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, if a franchisee is granted an extension beyond the initial 365 days to open their location, they will incur an opening deadline extension fee. This fee is $500 per month, or for any portion of a month that the deadline is extended.
This fee automatically begins on the first date of default, assuming a lease has not been executed. The fee is payable for each month the extension is granted, and it can be applied for up to 12 months.
However, there are consequences for failing to pay this fee or indicating an unwillingness to pay. If the franchisee does not pay the delayed opening fee, stops the ACH payments, or notifies Deka Lash in writing that they no longer want to be charged the fee, they will immediately lose their protected territory rights and all accompanying transferability rights. This highlights the importance of adhering to the agreed-upon development schedule or communicating promptly with Deka Lash regarding any potential delays and payment concerns.