When is the Prospect Generation Fee due for a Deka Lash franchise?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Prospect | The actual cost | Prior to us giving | In the event you decide to sell |
| Generation | incurred by us, including commissions and fees charged by business brokers in cases where the buyer is identified through such broker. | consent to transfer your operating studio. | your operating studio to a prospective franchisee that comes from a lead generated through us (including broker networks, consultants, and referral sources used by us) you will be required to pay us a Prospect Generation Fee to reimburse us for our associated expenses before we will consent to the transfer of the operating studio to such a buyer. This fee is in addition to the Transfer Fee. |
| Fee |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the Prospect Generation Fee is due prior to Deka Lash giving consent to transfer your operating studio. This fee is incurred if you decide to sell your Deka Lash operating studio to a prospective franchisee that was initially a lead generated by Deka Lash, including leads from broker networks, consultants, and referral sources used by them.
The amount of the Prospect Generation Fee is the actual cost incurred by Deka Lash, including commissions and fees charged by business brokers if the buyer was identified through such a broker. This fee is designed to reimburse Deka Lash for their expenses associated with generating the lead.
It's important to note that the Prospect Generation Fee is in addition to the standard Transfer Fee. This means that a Deka Lash franchisee selling their studio to a lead provided by the franchisor will have to pay both fees. Prospective franchisees should consider this potential cost when evaluating the financial implications of selling their franchise in the future.