Under what conditions is the Deka Lash transfer fee waived?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | $10,000 (complete transfer or transfer or transfer of a majority interest) per transaction. Selling franchisee is responsible for all applicable broker fees. | At the time you transfer the franchise or a majority ownership in it. | Transferee must be approved by us and you must be in compliance with your Franchise Agreement. No fee if transferred from individual to business entity owned by the same owners with the same ownership percentages. If deemed necessary, we can revise the transfer fee once a calendar year with a 30 days' |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the transfer fee is generally $10,000 when transferring the franchise or a majority ownership interest. However, this fee is waived under a specific condition.
The transfer fee is waived if the franchise is transferred from an individual to a business entity, provided that the same owners maintain the same ownership percentages in the new entity. This means that if the ownership structure and percentages remain identical during the transfer to a business entity, the franchisee will not have to pay the $10,000 transfer fee.
It is important to note that Deka Lash retains the right to revise the transfer fee once per calendar year, with a 30-day notice. Additionally, the transferee must be approved by Deka Lash, and the franchisee must be in compliance with the Franchise Agreement for any transfer to be approved.