What is the Deka Lash transfer fee for a complete transfer or transfer of a majority interest?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | $10,000 (complete transfer or transfer or transfer of a majority interest) per transaction. Selling franchisee is responsible for all applicable broker fees. | At the time you transfer the franchise or a majority ownership in it. | Transferee must be approved by us and you must be in compliance with your Franchise Agreement. No fee if transferred from individual to business entity owned by the same owners with the same ownership percentages. If deemed necessary, we can revise the transfer fee once a calendar year with a 30 days' |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the transfer fee for a complete transfer or transfer of a majority interest is $10,000 per transaction. This fee is due at the time of the transfer. The selling franchisee is responsible for all applicable broker fees.
The document specifies that the transferee must be approved by Deka Lash and the franchisee must be in compliance with their Franchise Agreement to be eligible for a transfer. There is no transfer fee if the franchise is transferred from an individual to a business entity owned by the same owners with the same ownership percentages.
Deka Lash retains the right to revise the transfer fee once per calendar year, providing 30 days' notice. This clause gives Deka Lash the flexibility to adjust the fee based on market conditions or other factors, which could impact the cost of transferring a franchise in the future. Franchisees should be aware of this potential for change and factor it into their long-term financial planning.
It is important for prospective franchisees to understand all the conditions and potential costs associated with transferring a Deka Lash franchise, including broker fees and the possibility of fee revisions. Consulting with a franchise attorney and financial advisor is recommended to fully assess the implications of these transfer terms.