For what specific item does Deka Lash potentially offer financing?
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, financing may be available for the Initial Franchise Fee for any additional unit rights acquired after the initial 24 months of the franchise agreement. Deka Lash itself is the source of this financing.
The document specifies that Deka Lash may finance 50% of the Initial Franchise Fee for additional units, requiring a 50% down payment from the franchisee. The interest rate on the financed amount is 10% Annual Percentage Rate (A.P.R.), with a repayment period of 60 months. For example, the monthly payment would be $404 per month on a $19,000 loan.
Deka Lash requires a personal guaranty as security. If the franchisee is an entity, the owners of the franchisee entity must personally guarantee the debt. There is no prepayment penalty, but default leads to termination of the Franchise Agreement, with the franchisee liable for the entire amount due, attorney fees, and court costs. The franchisee also waives the right to a jury trial, homestead and other exemptions, and waives presentment, demand, protest, notice of dishonor.