Under what conditions can Deka Lash issue a client refund and bill the franchisee?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Foo | Amount | Due Date | Remarks |
|---|---|---|---|
| Fee Taxes and Indebtedness | Amount You will pay all taxes, assessments, liens, encumbrances, accounts, and other debts, regardless of their nature, assessed against you, the Franchise Premises, or inventory, materials, fixtures, and equipment used in your | Due Date Payment will be made when due and before delinquent except when being contested in good faith by appropriate proceedings. | Remarks If we are charged with any tax by the authorized taxing authority of any state or municipality, including taxes on sales made to or licenses granted to you, or sales made by you at the Franchise Premises, you will pay those taxes and otherwise agree to allow us to deduct any amounts we paid. We do not charge royalty or Brand Development Fees on sales tax. |
| Sales, excise | Franchise. Actual amount incurred. | At time of payment of fees to us which are subject to any tax. | If required by the federal, state or locality in which your franchise is located. Including sales, excise or gross receipts tax or similar type tax on the initial franchise fee, royalty, training, Brand Development Fee, products, and any other services, products or fees. |
| or gross | |||
| receipts tax | |||
| Assistance | Reimbursement for reasonable expenditures incurred including travel, lodging, per diem and wages. | At time of expense. | In the event of your death or incapacity, we are entitled to reimbursement from you or your estate for any reasonable expenses incurred continuing services. |
| Fee in the | |||
| event of death | |||
| or incapacity | |||
| Client Refunds | The amount of any fee we refund to a client. | At time of payment. | If you do not resolve a client service complaint and we believe a reasonable basis exists for a refund to the client of all or a portion of the client fees, we may make the refund and bill you. You agree to pay the charges. |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash can issue a client refund and bill the franchisee under specific circumstances related to unresolved client service complaints. If a Deka Lash franchisee fails to resolve a client's service complaint, and Deka Lash believes there is a reasonable basis for a refund, Deka Lash may issue a refund to the client. The franchisee is then billed for the amount of the refund and is obligated to pay it.
This policy means that Deka Lash retains the authority to address customer service issues directly if the franchisee does not adequately resolve them. This could protect the brand's reputation and ensure customer satisfaction. However, it also places a financial responsibility on the franchisee to cover the cost of refunds issued by Deka Lash in these situations.
For a prospective Deka Lash franchisee, this highlights the importance of proactively addressing and resolving client complaints to avoid potential refund charges. Franchisees should ensure they have effective customer service protocols in place and respond promptly to any issues raised by clients. This policy underscores the need for franchisees to prioritize customer satisfaction to maintain positive client relationships and avoid incurring additional costs from client refunds issued by Deka Lash.