When is the Deka Lash transfer fee due?
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 Deka Lash's 2024 Franchise Disclosure Document, the transfer fee is due at the time you transfer the franchise or a majority ownership in it. The transfer fee is $10,000 for a complete transfer or transfer of a majority interest per transaction. The selling franchisee is responsible for all applicable broker fees.
Notably, the transfer fee is not required if the transfer is from an individual to a business entity owned by the same owners with the same ownership percentages. Deka Lash also retains the right to revise the transfer fee once a calendar year, providing 30 days' notice before the change takes effect.
For a prospective Deka Lash franchisee, this means that if they decide to sell their franchise or a majority stake in it, they will need to pay Deka Lash a $10,000 transfer fee at the time of the transfer. They should also factor in any broker fees they might incur during the sale, as those are their responsibility. It is important to be aware of the conditions under which the transfer fee may be revised by Deka Lash.