Is the payment for the initial inventory and supplies package for a Deka Lash franchise refundable?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
ntory and Supplies**
You must also buy an opening package of inventory and supplies from us, our affiliate, DL Products, LLC, and/or third parties, that costs approximately $13,500 for initial inventory and supplies to begin operation of the franchise, according to our current standards and specifications outlined from time to time in the Operations Manual. Neither we nor our affiliate finance any portion of your purchases. Payment is due when you order the relevant inventory and supplies from our affiliate and is non-refundable. We reserve the right to require you to process some or all product purchases through automatic account withdrawal or electronic funds transfer processes we designate and outline in the Operations Manual.
If your Franchise Agreement or Area Development Agreement is terminated (whether for your failure to commence operations, failure to successfully complete initial training program, or for any other reason), we or our affiliates have no obligation to refund any portion of the purchase price for products, supplies, or other
Source: Item 5 — INITIAL FEES (FDD pages 12–15)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the payment for the initial inventory and supplies package is non-refundable. The FDD states that franchisees must purchase an opening package of inventory and supplies from Deka Lash, its affiliate DL Products, LLC, or third parties. This package costs approximately $13,500. Payment is due when the franchisee orders the inventory and supplies, and this payment is non-refundable.
This means that if a prospective Deka Lash franchisee terminates their Franchise Agreement or Area Development Agreement, whether due to failure to commence operations, failure to complete the initial training program, or any other reason, neither Deka Lash nor its affiliates are obligated to refund any portion of the purchase price for the products, supplies, or other amounts paid by the franchisee. This policy is fairly standard in the franchise industry, as these initial inventory and supply packages are often considered necessary to begin operations and are difficult to resell or return.
It is important for potential Deka Lash franchisees to carefully consider this non-refundable aspect of the initial inventory and supplies package. Franchisees should ensure they have a solid business plan and are confident in their ability to successfully launch and operate their Deka Lash studio before making this purchase. Understanding this policy can help franchisees make informed decisions and avoid potential financial losses.