To whom are Rent & Security Deposits paid for a Deka Lash franchise, and when are they due?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
ESTMENT FRANCHISE AGREEMENT
| Fee | Estimated | Estimated | Method of | When Due | To Whom Payment |
|---|---|---|---|---|---|
| Amount Low | Amount High | Payment | is to be Made | ||
| Initial Franchise Fee (Note 1) | $59,900 | $59,900 | Wire / ACH | Upon entering into franchise agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, rent and security deposits, which range from $12,000 to $25,000, are paid monthly to the landlord and potentially to third-party suppliers. This estimate covers the first three months of operation and includes a security deposit equivalent to one month's rent. Deka Lash estimates that franchisees will need to rent a location of approximately 750-1,250 square feet.
These rental costs can fluctuate significantly based on geographic location and the size of the selected location. Franchisees should carefully consider these factors when budgeting for their initial investment. The FDD advises that franchisees will need to improve a retail location in accordance with Deka Lash's specified studio design. This build-out includes a bathroom, walls, flooring, plumbing, HVAC, lighting, phone ports, data ports, a security system, and electrical work, with the exact requirements depending on the condition of the premises.
Prospective franchisees should conduct thorough market research to understand local rental rates and negotiate favorable lease terms. They should also factor in potential tenant improvement allowances, which can help offset some of the build-out costs. Understanding these variables is crucial for managing the initial investment and ensuring the long-term financial viability of the Deka Lash franchise.