What is the required procedure for a Deka Lash franchisee to make payments for franchise fees?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
The undersigned Franchisee hereby acknowledges and agrees that DL Franchising, LLC d/b/a Deka Lash has fulfilled its pre-opening obligations to the Franchisee as stated in Item 11 of the Deka Lash Franchise Disclosure Document, the Franchisee is now open for business, and the Franchisee hereby tenders to Deka Lash the initial franchise fee due and owing under its Franchise Agreement.
In addition, the signatures of all individuals below, in any capacity, including spouses, also constitute their personal joint and several agreement to perform all the obligations in and relating to this Agreement, including, but not limited to, the obligations stated in Paragraphs 11-13 above, the obligation to make specified payments, and pay any other debts due to us.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
Based on the 2024 Deka Lash Franchise Disclosure Document, a receipt included in Item 23 indicates that upon fulfilling pre-opening obligations outlined in Item 11 and opening for business, the franchisee is required to tender the initial franchise fee to Deka Lash. This acknowledges that Deka Lash has met its pre-opening responsibilities.
Furthermore, the signatures of all individuals, including spouses, on the franchise agreement constitute a personal joint and several agreement to fulfill all obligations, including making specified payments and settling any debts owed to Deka Lash. These individuals act as guarantors, ensuring the franchisee's financial commitments are met.
Prospective franchisees should carefully review Item 11 of the FDD to understand Deka Lash's pre-opening obligations. They should also be aware that signing the franchise agreement commits them to making all required payments. It is advisable to seek legal counsel to fully understand the implications of the agreement and the obligations of any guarantors.