To whom is the payment for Furniture, Fixtures and Equipment paid when opening 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, the payment for Furniture, Fixtures, and Equipment is made to third-party vendors. This is part of the initial investment required to set up a Deka Lash studio. The estimated cost for these items ranges from $60,000 to $86,000. These costs include the specified studio furniture, fixtures, and equipment that Deka Lash requires franchisees to use. Shipping and lighting are included in this estimate. Franchisees will also incur costs to have these items installed in their studio. The estimated initial investment represents studios that have 3 to 5 beds.
Prospective franchisees should note that the specific amount they pay may vary. The FDD indicates that the costs depend on the number of beds and the extent of furnishing in the common areas of the studio. Therefore, franchisees need to carefully plan their studio layout and equipment needs to manage these costs effectively.
It is important for potential Deka Lash franchisees to confirm which vendors are approved or required by Deka Lash for these purchases. Understanding the payment terms and refund policies of these third-party vendors is also crucial, as the franchisor notes that the refundability of fees paid to third parties depends on their individual policies. This information will help franchisees budget accurately and avoid potential financial risks during the initial setup phase.