Under what conditions might Deka Lash offer financing for an additional expansion territory?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
itial franchise fee is $19,900.
If you have been a franchisee for at least 24 months, we may offer financing of up to 50% of the initial franchise fee of $38,000 for an additional expansion territory, at 10% per annum interest, repaid monthly over 60 months. If you financed $19,000 over 60 months at 10% per annum interest, your monthly paym
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash may offer financing for an additional expansion territory under specific conditions. If a franchisee has been operating for at least 24 months, Deka Lash may finance up to 50% of the $38,000 initial franchise fee.
The financing terms include a 10% annual interest rate, with repayments structured in monthly installments over 60 months. For example, if a franchisee finances $19,000 (50% of the initial franchise fee) under these terms, their monthly payment would be approximately $404.
This financing option can significantly lower the upfront capital required for existing franchisees looking to expand. However, franchisees should carefully consider the interest rate and repayment terms to ensure they can comfortably manage the additional debt. It is also important to note that this financing is not guaranteed and is subject to Deka Lash's discretion.