What time period do the Deka Lash initial expense estimates generally cover?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
th opening a second and subsequent locations which will incur additional costs.
Note 5 – Generally. Does not include royalties, Brand Development Fees, interest expense, depreciation, or taxes. These figures are estimates of your initial expenses covering the first three months of your operation. We cannot guarantee that you will not have additional expenses starting the business. You should review these figures carefully with a business advisor before making any decision to purchase the franchise.
ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
The Goods or Services Required to be Purchased or Leased:
Advertising and Marketing. You must use advertising material provided by us, a vendor that we designate, or we must approve the advertising in writing, prior to its use.
Computers and Software. You must purchase such computer hardware and subscribe to and use the Point-of-Sale, client management and scheduling, and other software systems that we specify. You will execute and be bound by all software licenses we require.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the estimated initial expenses generally cover the first three months of operation. Specifically, the FDD notes that the estimates do not include royalties, Brand Development Fees, interest expense, depreciation, or taxes.
The FDD provides estimates for various initial costs, such as rent, utilities, and payroll. For example, the estimate for utilities covers initial setup and three months of service. Similarly, the payroll estimate includes compensation expenses for four full-time lash artists paid over 12 weeks. The additional funds estimate also covers 12 weeks, intended for software licenses, technology fees, permits, licenses, and working capital.
Prospective franchisees should be aware that these are only estimates, and Deka Lash cannot guarantee that franchisees will not incur additional expenses. It is crucial to carefully review these figures with a business advisor to make an informed decision about purchasing the franchise.