Who is responsible for paying the transfer fee to Deka Lash during a franchise transfer?

According to the 2024 Deka Lash Franchise Disclosure Document, the 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 specify whether the transferor or the transferee is responsible for paying the fee.

Because the FDD does not specify who is responsible for paying the transfer fee, prospective franchisees should seek clarification from Deka Lash regarding this matter. Understanding who bears the responsibility for covering these costs is essential for accurate financial planning during a franchise transfer.

It is common practice in the franchise industry for either the seller (transferor) or the buyer (transferee) to pay the transfer fee, or for the parties to negotiate the split of the fee. The specific arrangement can depend on various factors, including the negotiated terms of the transfer agreement and local regulations.