When is the payment for Furniture, Fixtures and Equipment due for a Deka Lash franchise?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fee | Estimated | Estimated | Method of | When Due | To Whom Payment |
|---|---|---|---|---|---|
| Amount Low | Amount High | Payment | is to be Made | ||
| Furniture, Fixtures and Equipment | $60,000 | $86,000 | As Arranged | Before Opening | Third-party vendors |
| (Note 9) |
Note 9 – Furniture, Fixtures and Equipment. You are required to use the specified studio furniture, fixtures and equipment and other items we specify. Shipping and lighting is included. Additionally, you will incur costs to have these items installed in your studio. Costs will vary
depending on the number of beds and extent of furnishing in the common areas of the studio. The estimated initial investment represents studios that have 3 to 5 beds.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, payment for furniture, fixtures, and equipment is due before opening the franchise. The estimated cost for these items ranges from $60,000 to $86,000, and payment is arranged with third-party vendors.
Prospective Deka Lash franchisees should note that these costs can vary depending on the number of beds and the extent of furnishing in the common areas of the studio. The estimated initial investment is based on studios that have 3 to 5 beds. It is important to clarify with Deka Lash and the third-party vendors what specific furniture, fixtures, and equipment are included in these estimates and to understand any factors that could cause the costs to fluctuate.
As the FDD indicates, franchisees are required to use the specified studio furniture, fixtures, and equipment and other items that Deka Lash specifies. Shipping and lighting are included in the estimate, but franchisees will also incur costs to have these items installed in their studio. Therefore, it is crucial for potential franchisees to factor in these additional installation costs when budgeting for their initial investment. Understanding these requirements and potential variations will help franchisees plan their finances more accurately and avoid unexpected expenses during the setup phase.