Is there a transfer fee charged by Deka Lash for a transfer to a Controlled Entity?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 14.3 Transfer to a Controlled Entity. A "Controlled Entity" is an entity in which you are the beneficial owner of 100% of each class of voting ownership interest. A transfer to a Controlled Entity shall not trigger the Right of First Refusal, described in Section 14.6 below. At the time of the desired transfer of interest to a Controlled Entity, you must notify us in writing of the name of the Controlled Entity and the name and address of each officer, director, shareholder, member, partner, or similar person and their respective ownership interest. We do not charge a transfer fee for this change.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a transfer to a Controlled Entity does not incur a transfer fee. The FDD defines a "Controlled Entity" as one where the franchisee is the beneficial owner of 100% of each class of voting ownership interest.
To initiate a transfer to a Controlled Entity, the franchisee must provide written notification to Deka Lash. This notification should include the name of the Controlled Entity and the name and address of each officer, director, shareholder, member, partner, or similar person, along with their respective ownership interest.
This policy of waiving the transfer fee for transfers to a Controlled Entity can be beneficial for franchisees looking to structure their business for tax or liability purposes without incurring additional costs. However, it's crucial to adhere to the notification requirements to ensure the transfer is properly documented and approved by Deka Lash.