What is the prohibited action for a Deka Lash franchisee regarding the Opening Deadline Extension Fee?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
the build out, obtaining furniture and equipment, hiring and training staff, obtaining an occupancy permit, and your personal operational If you fail to open the Franchise within this time limit, you must pay us an Opening Deadline Extension Fee of $500 for each month, or portion of month, that you are delayed in opening your studio beyond the 365 days allowed in this agreement. We will allow you to pay an Opening Deadline Extension Fee for up to 12 months. If at any point you (a) do not pay your Opening Deadline Extension Fee, (b) stop or refute our ability to debit or 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 Opening Deadline Extension Fee you fail to open the franchise unit, we may terminate the Franchise Agreement and will retain the entire Initial Franchise Fee. Additionally, we have n
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–40)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a franchisee is prohibited from stopping or refuting Deka Lash's ability to debit or ACH the Opening Deadline Extension Fee transaction.
Specifically, Deka Lash requires franchisees to open their studio within 365 days from the effective date of the Franchise Agreement. If a franchisee fails to meet this deadline, they must pay an Opening Deadline Extension Fee of $500 for each month (or portion thereof) that they are delayed. This fee can be paid for up to 12 months.
The agreement states that if a franchisee does not pay the Opening Deadline Extension Fee, stops or refutes Deka Lash's ability to debit or ACH the transaction, notifies Deka Lash in writing that they no longer want to be charged the delayed opening fees, or fails to open the franchise unit after 12 months of paying the fee, Deka Lash may terminate the Franchise Agreement and retain the entire Initial Franchise Fee. Additionally, Deka Lash has no obligation to refund any portion of products and inventory purchased or other amounts paid to them, their affiliates, or third parties.