What does the Deka Lash Quality Control Inspection Fee cover?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Business | Up to $400 per month if your Franchised Business is listed by us. We are not currently collecting such fee and are requiring you to list your Franchised Business yourself. | On demand. | You must pay to us the cost of listing or promotion of your Franchised Business as specified in our manuals. Any Business Listing payments will be applied against Local Marketing requirements |
| Listing & | |||
| Promotion Fee | |||
| Unauthorized | $750 per occurrence. | On demand. | If you fail to report cash or other payments through your POS account, we may charge you $500 per occurrence and declare you in default of your franchise agreement, the consequence of which can be the termination of your franchise agreement. |
| or Unreported | |||
| Payment Fee | |||
| Quality Control Inspection Fee | Reasonable costs associated with inspection of your business (including transportation, meals, lodging and employee wages.) | On demand. | We may, at our sole discretion, conduct a Quality Control inspection annually, or more frequently if you fail to maintain franchise standards, receive repeated consumer complaints or fail to comply with any provisions of the franchise agreement. You agree to pay us the reasonable costs associated with such inspections. |
| Failure to Comply Fee | $500 for the first breach, $1,000 for the second breach, and $2,500 for the third breach and any other breaches. | On demand. | We may charge this fee if you breach any of the terms, conditions, or policies outlined in the franchise agreement or the operations manual, otherwise fail to comply with our standards and specifications, or use unauthorized products, |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the Quality Control Inspection Fee covers the reasonable costs associated with the inspection of a franchisee's business. These costs include transportation, meals, lodging, and employee wages incurred during the inspection.
Deka Lash may conduct a Quality Control inspection annually, but can occur more frequently if a franchisee fails to maintain franchise standards, receives repeated consumer complaints, or fails to comply with any provisions of the franchise agreement. The frequency of these inspections is at Deka Lash's discretion.
This fee is charged 'on demand,' meaning it is not a regular, recurring fee but rather one that is assessed as needed based on the circumstances mentioned above. As a prospective franchisee, it's important to understand the conditions under which these inspections are conducted and the potential costs involved to avoid unexpected expenses.