Under what condition is the initial franchise fee for a Deka Lash franchise reduced to $38,000?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Reserved.** Except as provided in this Section 3 of this Agreement, the parties agree and acknowledge that the rights granted in this Agreement are non-exclusive and that we and our affiliates reserve all other rights not expressly granted to you herein.
4. FEES AND PAYMENTS
- 4.1 Initial Franchise Fee. The initial franchise fee is $59,900. If you purchase additional Franchised Business rights after the signing of your first Franchise Agreement with us, the initial franchise fee is $38,000 per Franchised Business provided the subsequent purchase occurs within five years of signing the first franchise agreement with us and you are current on your obligations to us. If you are acquiring an open and operating Franchised Business, the franchise fee is $19,900. If you fail to open the Franchise w
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the standard initial franchise fee is $59,900. However, the initial franchise fee is reduced to $38,000 under specific circumstances.
The reduced fee of $38,000 applies when a franchisee purchases additional Deka Lash franchise rights after signing their first Franchise Agreement. This subsequent purchase must occur within five years of signing the initial agreement.
To qualify for the reduced fee, the franchisee must be current on all obligations to Deka Lash at the time of the subsequent purchase. If a franchisee is acquiring an already open and operating Deka Lash franchise, the franchise fee is $19,900.