How does paying the Delayed Opening Fee affect the Deka Lash development schedule?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
dates by 6 months. Pursuant to COMAR 02.02.08.16L, the general release required as a condition of sale, or transfer, shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
- b) Delayed Opening Fee Assessed (for up to 12 months). For each month you are behind on your Development Schedule (Extension with Release excluded), you will be charged a Delayed Opening Fee of $500 for each territory when that territory is due. This Development Schedule Extension Fee must be paid to us with our then-current royalty collections process. For each month this is paid, your development schedule for each of
- those unit rights will be extended by one month. We will allow you to pay a Delayed Opening Fee for up to 12 months.
- c) Loss of Protected Territory and Transferability. 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 t
Source: Item 12 — TERRITORY (FDD pages 40–44)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, paying the Delayed Opening Fee allows an area developer to extend their development schedule. For each month a Deka Lash area developer is behind schedule, they will be charged a Delayed Opening Fee of $500 for each territory when that territory is due. This fee is paid along with the then-current royalty collections.
For each month the Delayed Opening Fee is paid, the Deka Lash development schedule for each of those unit rights will be extended by one month. Deka Lash allows area developers to pay the Delayed Opening Fee for up to 12 months, providing a maximum extension of one year to the development schedule.
However, there are consequences for failing to maintain Delayed Opening Fee payments. If a Deka Lash area developer does not pay the fee, stops the ACH payments, states in writing they no longer want to be charged the fees, or after 12 months of payments, they will immediately lose their protected territory rights and all accompanying transferability rights. Additionally, Deka Lash retains all rights to approve the studio location(s).