Under what circumstances is the Deka Lash Development Fee refundable?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
I acknowledge that the initial franchise fee and/or the Development Fee associated with Area Development Agreement (where appropriate), the Operations Onboarding & First Studio Opening Support Fee (where appropriate) and the Non-Refundable Training Fee (where appropriate) is fully earned at the time of execution and that is NOT REFUNDABLE UNDER ANY CIRCUMSTANCES.
I acknowledge that if there is any applicable laws, rules and regulations (including the federal, state, city or locality laws or rules) such that it makes it illegal, fiscally impractical, or otherwise impractical to offer services provided in association with operating a Deka Lash facility, that I will not be refunded any of the initial franchise fee, the Development Fee associated with Area Development Agreement (where appropriate), the Non-Refundable Training Fee and/or the Operations Onboarding & First Studio Opening Support Fees paid for any opened or unopened territories.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the Development Fee associated with an Area Development Agreement is generally not refundable. Specifically, the FDD states that the Development Fee is deemed fully earned upon payment and is not refundable under any circumstances.
However, there is one exception mentioned in the FDD. If laws, rules, or regulations at the federal, state, city, or local level make it illegal or fiscally impractical to offer the services associated with operating a Deka Lash facility, the Development Fee will not be refunded. This suggests that while the standard policy is non-refundable, extreme circumstances that legally prevent the business from operating might be considered, though a refund is still not guaranteed.
It is important for prospective Deka Lash franchisees to understand that the Development Fee is typically non-refundable. Franchisees should conduct thorough due diligence to ensure they understand all applicable laws and regulations in their area before signing the Area Development Agreement and paying the Development Fee. Franchisees should also carefully consider the financial implications of the agreement, as the fee will not be returned even if unforeseen circumstances arise that make operating the franchise difficult or impossible, unless those circumstances fall under the specific legal or fiscal impracticality clause.