What is the repayment period for a Deka Lash financed loan?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Item Financed | Initial Franchise Fee for any additional unit rights acquired after 24 months of signing of a Franchise Agreement |
|---|---|
| Source of Financing | Us |
| Down Payment | 50% |
| Amount Financed | 50% |
| Interest Rate | 10% Annual Percentage Rate (A.P.R.) |
| Period of Repayment | 60 months |
| Monthly Payment | $ 404 per month on a $19,000 loan |
| Security Required | Personal Guaranty |
| Whether a Person Other than the Franchisee Must Personally Guarantee the Debt | If the franchisee is an entity, the owners of the franchisee entity must personally guarantee the debt |
| Prepayment Penalty | None |
| Liability Upon Default | Termination of Franchise Agreement; you must pay entire amount due, our attorney fees, and court costs in collecting debt. |
| Waiver of Defenses or Other Legal Right on Default | Waiver of right to jury trial; homestead and other exemptions; waiver of presentment, demand, protest, notice of dishonor. |
Source: Item 10 — FINANCING (FDD pages 31–32)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, if Deka Lash offers financing for the initial franchise fee for additional units acquired after 24 months, the repayment period is 60 months. This is based on the condition that the franchisee has been operating for at least 24 months before being eligible for financing.
The availability and amount of financing are contingent upon the availability of funds and the franchisee's creditworthiness. The interest rate for such financing is set at 10% Annual Percentage Rate (A.P.R.). For a $19,000 loan, the estimated monthly payment would be $404.
The loan is secured by a personal guaranty, and if the franchisee is an entity, the owners of the entity must personally guarantee the debt. There is no prepayment penalty, allowing franchisees to pay off the loan early without incurring additional charges. However, default on the loan results in the termination of the Franchise Agreement, and the franchisee is liable for the entire amount due, including attorney fees and court costs incurred by Deka Lash in collecting the debt. The franchisee also waives certain legal rights, such as the right to a jury trial and certain exemptions, in the event of default.