Who is responsible for paying the Transfer Fee in a Deka Lash franchise transfer?

According to the 2024 Deka Lash Franchise Disclosure Document, the Washington Addendum clarifies the collectability of transfer fees. Specifically, transfer fees are collectable to the extent that they reflect Deka Lash's reasonable estimated or actual costs in effecting a transfer. The document does not explicitly state whether the transferor (the franchisee selling the business) or the transferee (the buyer) is responsible for paying these fees.

This lack of clarity means that the responsibility for paying the transfer fee is subject to negotiation between the buyer and seller, or as dictated by the franchise agreement. It is common in franchise agreements for the seller to be responsible for the transfer fee, but this is not universally the case. The specific terms of the franchise agreement would dictate the exact responsibilities of each party.

Prospective franchisees should carefully review the franchise agreement and any addenda to understand who is ultimately responsible for covering the transfer fees in the event of a sale. It would be prudent to discuss this point with Deka Lash during the due diligence process to gain a clear understanding of their expectations and policies regarding transfer fees.