When is the reimbursement for assistance fee due to Deka Lash in the event of death or incapacity?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Foo | Amount | Due Date | Remarks |
|---|---|---|---|
| Fee Taxes and Indebtedness | Amount You will pay all taxes, assessments, liens, encumbrances, accounts, and other debts, regardless of their nature, assessed against you, the Franchise Premises, or inventory, materials, fixtures, and equipment used in your | Due Date Payment will be made when due and before delinquent except when being contested in good faith by appropriate proceedings. | Remarks If we are charged with any tax by the authorized taxing authority of any state or municipality, including taxes on sales made to or licenses granted to you, or sales made by you at the Franchise Premises, you will pay those taxes and otherwise agree to allow us to deduct any amounts we paid. We do not charge royalty or Brand Development Fees on sales tax. |
| Sales, excise | Franchise. Actual amount incurred. | At time of payment of fees to us which are subject to any tax. | If required by the federal, state or locality in which your franchise is located. Including sales, excise or gross receipts tax or similar type tax on the initial franchise fee, royalty, training, Brand Development Fee, products, and any other services, products or fees. |
| or gross | |||
| receipts tax | |||
| Assistance | Reimbursement for reasonable expenditures incurred including travel, lodging, per diem and wages. | At time of expense. | In the event of your death or incapacity, we are entitled to reimbursement from you or your estate for any reasonable expenses incurred continuing services. |
| Fee in the | |||
| event of death | |||
| or incapacity |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, in the event of a franchisee's death or incapacity, Deka Lash is entitled to reimbursement for reasonable expenditures incurred while continuing services. This includes costs related to travel, lodging, per diem, and wages. The reimbursement is due at the time the expense is incurred.
This means that if a Deka Lash franchisee were to pass away or become incapacitated, their estate or the franchisee themselves would be responsible for covering the costs Deka Lash incurs to maintain operations and provide support during the transition. These costs could include travel and accommodation for Deka Lash personnel, daily allowances for their expenses, and the wages of any staff temporarily assigned to assist the franchise location.
For a prospective franchisee, this highlights the importance of having a solid succession plan or adequate insurance coverage to address such unforeseen circumstances. It's crucial to understand that these expenses would be in addition to any other financial obligations outlined in the franchise agreement. Franchisees should discuss this potential liability with Deka Lash during their due diligence to fully understand the scope of possible costs and how they are calculated.