Deka Lash

The ad fund rate of 3.0% is above the typical 1.0-2.5% range for this category. How is this fund specifically allocated and can you provide an itemized breakdown of advertising expenditures for the past 12 months?

The franchise fee of $59,900 exceeds the typical range. What specific training, technology, or support justifies this premium pricing compared to competitors?

Termination rate of 9.7% is significantly above the typical 0.0-1.95% range. What are the primary reasons franchisees have been terminated, and what proportion were for non-payment versus operational or compliance violations?

Can you explain the spike in closures and terminations in 2023 (31 combined exits) compared to 2022 (11 combined exits)? Were there any systemic issues, changes in operations, or market conditions that contributed?

The 1-year turnover rate of 10.5% and closure rate of 10.5% both exceed typical ranges. How do you define 'closure' versus 'termination' in your exit classifications, and are there distinguishing factors?

Gross sales averages of $280,909 are 38-60% below typical category ranges. Are there specific territories, unit types, or service mixes that perform closer to or above category averages?

What is the renewal rate or non-renewal rate? The data shows 0.0% non-renewal, which seems inconsistent with overall exit patterns. Are franchises choosing not to renew, or is the non-renewal metric not tracked separately?

Transfer rate of 8.1% exceeds typical ranges. What is the franchisor's stance on franchisee-to-franchisee transfers, and are there restrictions or pre-approval requirements that might limit this activity?

Why is the total potential term limited to 10 years when category norms are 15.5-20.0 years? Does this short contract term present risk for franchisees making significant capital investments?

The non-compete radius of 30 miles exceeds the typical 5.75-25.0 mile range. How was this radius determined, and are there documented cases of franchisees challenging or negotiating this provision?

Can you clarify how renewal fees of $3,500 and transfer fees of $10,000 interact with the 10-year initial term? Are these mandatory expenses at renewal, and what conditions trigger the renewal fee?

The dispute resolution clause requires 60-day mediation followed by mandatory binding arbitration, with waiver of class action and jury trial rights. Have any disputes gone to arbitration, and what were the outcomes and remedies?

Personal guarantees are required from all individuals and spouses. In the event of a dispute or financial claim, how have personal guarantees been enforced, and what documentation should franchisees review carefully?

Has the franchisor experienced any employment lawsuits, regulatory compliance issues, or consumer complaints that aren't captured in litigation records, especially related to lash service quality or safety?

Given the System Health score of 33/100 (well below the typical 50-75 range), what specific operational or support metrics does the franchisor use internally to track system health, and where are the primary gaps?

Can you provide financial performance data broken down by territory, unit age, or service offerings? Are underperforming units concentrated in specific regions or unit types?

What percentage of current franchisees have achieved profitability within their first 1, 2, and 3 years of operation, and what is the average break-even timeline?

What happens at the end of the 10-year term if a franchisee cannot negotiate a renewal? Are there contractual buyback provisions or assistance with exit strategies?

Have there been any changes to the franchise agreement, fee structure, or operational requirements in the past 3 years that might explain the elevated exit rates in 2023?

What specific training, ongoing support, marketing resources, and technology tools are included in the initial franchise package to support the $59,900 franchise fee investment?