Under what conditions is the Deka Lash non-refundable training fee transferable?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Artist Training**
Additionally, for initial training at your first location, you must pay to us at the same time as the Initial Franchise Fee, a Non-Refundable Training Fee of $3,750. This Non-Refundable Training Fee is to offset the expected costs for the initial Lash Artist training for your staff. The Training Fee is non-refundable and non-transferable except to an entity owned by the same owners with the same ownership percentages. These trainings are generally offered at your franchise location. For your second and subsequent locations, you are not required to submit a Non-Refundable Training Fee, however you must still pay for and otherwise reimburse us for any training we provide and any related out-of-po
Source: Item 5 — INITIAL FEES (FDD pages 12–15)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the Non-Refundable Training Fee of $3,750 is generally non-transferable. However, there is an exception: the training fee can be transferred to an entity owned by the same owners with the same ownership percentages. This means that if the franchisee's business is structured as a separate legal entity, the training fee can be transferred to that entity as long as the ownership structure remains identical.
This condition is important for prospective Deka Lash franchisees to understand, especially if they plan to operate their franchise through a business entity. If the ownership structure changes, the training fee will not be transferable, potentially resulting in additional costs if further training is required.
It is also important to note that this transferability applies only to the Non-Refundable Training Fee for the initial Lash Artist training at the first location. For subsequent locations, while the training fee is waived, franchisees are still responsible for covering the costs of any training provided by Deka Lash, including travel expenses.