What is the Deka Lash transfer fee for a complete transfer of my franchise?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
n franchise standards, receive repeated customer complaints, or fail to comply with any provisions of this Agreement. You agree to pay us the reasonable costs associated with such inspection of your business, including the transportation, meals, lodging and wages that we incur related to such inspection.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, a franchisee must pay a transfer fee of $10,000 to Deka Lash for a complete transfer or transfer of a majority interest in their franchise. However, Deka Lash does not charge a transfer fee if the owners of the agreement transfer the agreement into an entity owned by the same owners with the same ownership percentages.
This fee covers Deka Lash's administrative costs and efforts in approving the transfer to a new franchisee. It is a fairly standard practice in franchising to charge a transfer fee, as the franchisor needs to vet and approve any new owners to ensure they meet the brand's standards and are capable of running the business successfully. The fee compensates Deka Lash for their time and resources in this process.
It's important for prospective franchisees to understand this fee, as it will impact their financial planning if they decide to sell their Deka Lash franchise in the future. Franchisees should also be aware of the conditions under which the transfer fee is waived, such as transferring the agreement to an entity with the same ownership structure. This could be a useful option for franchisees looking to restructure their business without incurring additional costs.