Deka Lash
Deka Lash offers eyelash extension studios with skincare services and Medspa options like injectables and fillers. Known for comprehensive beauty solutions, it operates in the cosmetic and wellness industry.
Deka Lash franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment required to open your initial Franchised Business ranges from $226,000 to $400,950. This figure is derived by subtracting the initial franchise fee of $59,900 from the low-end and high-end estimates provided in Item 7, Table 1 [p.27].
What is the initial franchise fee?
The initial franchise fee is $59,900 [p.85], but military veterans with proper documentation receive a 25% discount [p.25]. If acquiring an already open and operating Franchised Business, the fee is $19,900 [p.13, p.25].
What are the ongoing royalty and advertising fees?
The franchisees pay ongoing monthly royalty fees based on cash receipts, along with advertising fees, technology fees, and customer service fees. These fees are recognized as revenue when earned [p.230].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD excerpts do not detail the duration of the initial franchise agreement or the conditions for renewal beyond stating that renewal is possible under certain conditions if you are not in breach of the agreement and meet specific criteria [p.82].
Can I sell or transfer my franchise, and what does that require?
According to [p.5], you generally cannot transfer ownership of your franchise without good cause as determined by the franchisor. Good cause includes if a proposed transferee fails to meet qualifications, is a competitor, refuses to comply with obligations, or has unpaid debts. However, the franchisor may have a right of first refusal to purchase the franchise instead. [p.89] also mentions that if you sell your franchise through leads generated by the company (including brokers and referral sources), you must pay an additional fee to them.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on various grounds including insolvency, abandonment, mutual agreement, material misrepresentation, legal violation persisting 10 days after notice, repeated breaches, judgment, criminal conviction, failure to pay monies owed more than 5 days past due, and imminent danger to public health or safety. Additionally, the franchisor can terminate upon written notice and a 60-day opportunity to cure for any breach of the Franchise Agreement [p.65].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on net worth or liquid capital requirements for franchisees. However, it does mention that you must have adequate financial resources and capital to meet performance obligations [p.108] and notes that additional funds for 12 weeks are required for software licenses, technology fees, and working capital [p.26].
Do I get an exclusive or protected territory?
Yes, you receive an exclusive territory where the franchisor will not establish either company-owned or franchised outlets selling similar goods or services under the same trademarks within your Protected Area [p.42]. However, this exclusivity does not extend to marketing efforts, which can be challenging to limit geographically due to media like radio and the internet [p.42].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial four-day training program either virtually or in person [p.33]. This includes operations onboarding and first studio opening support, which is covered by the Operations Onboarding & First Studio Opening Support Fee paid at purchase time for up to two attendees from the franchise agreement [p.33]. For additional attendees, there is a $1,500 per person fee [p.33]. The franchisor may also offer assistance with operational support, business advising, and document review through Area Representatives [p.239]. However, specific ongoing training fees for subsequent locations are not specified in the excerpts provided.
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were 128 franchised locations, with 119 of them being open and in operation for at least 12 months. Twelve (12) outlets are not included because they closed partway through 2024. The number of closed or terminated outlets is not specified directly in the provided excerpts; however, it can be inferred that at least 12 outlets have closed or been terminated as of December 31, 2024. [p.56]
Does the franchisor share any financial performance or earnings information?
The franchisor may share actual records of an existing outlet if a prospective franchisee is purchasing one. However, other than this, the franchisor does not make any financial performance representations or authorize its employees or representatives to do so [p.57]. Financial performance data can be included in future Franchise Disclosure Documents but must adhere to specific conditions outlined by the FTC [p.56].
What am I restricted to selling, and where must I buy supplies?
You are generally prohibited from operating a similar business during the term of the franchise [p.3]. For supplies and inventory, you are required to purchase certain products and supplies from DL Products, LLC or another designated vendor as specified by the franchisor [p.29]. This includes an opening package that costs approximately $13,500 for Deka and an additional $20,000 to $25,000 if you are approved to offer Medspa services [p.15].