About Deka Lash Franchise
Deka Lash is a beauty franchise specializing in eyelash extensions and related services including eyebrow tinting, waxing, and shaping.
Studios also offer a curated selection of retail beauty products.
The franchise fee is $59,900, and the company has been franchising since 2016 under DL Brands, LLC.
Deka Lash Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $59,900 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Studio Sales or $150 per week, whichever is greater. After your 2nd year of operations, the minimum Royalty Fee increases to $250 per week. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 3% of Gross Studio Sales. (Currently 1% of Gross Studio Sales) | National brand fund |
| Total Investment Range | $221,630 – $539,484 | Includes build-out, inventory, working capital |
The investment range of $222K–$539K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Studio Sales or $150 per week, whichever is greater. After your 2nd year of operations, the minimum Royalty Fee increases to $250 per week.) and marketing fee (Up to 3% of Gross Studio Sales. (Currently 1% of Gross Studio Sales)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Note 1) | $59,900 | $59,000 |
| Operations Onboarding & First Studio Opening Support Fee (Note 2) | $5,450 | $5,450 |
| Initial Staff Training & Certification (Note 3) | $3,750 | $3,750 |
| Initial Operations Training (Note 4) | $300 | $3,000 |
| Design / Architectural Plans (Note 5) | $399 | $7,899 |
| Leasehold Improvements & Project Management (Note 6) | $15,000 | $189,119 |
| Rent & Security Deposits (Note 7) | $1,938 | $31,360 |
| Signage (Note 8) | $5,200 | $12,400 |
| Furniture, Fixtures and Equipment (Note 9) | $70,540 | $114,559 |
| Flooring (Note 10) | $2,510 | $7,790 |
| Computers and Hardware (Note 11) | $2,426 | $5,673 |
| Start-up Supplies / Inventory (Note 12) | $9,418 | $14,316 |
| Grand Opening / Marketing (Note 13) | $10,000 | $15,000 |
| Insurance & Permits (Note 14) | $3,250 | $7,500 |
| Professional Fees (Note 15) | $1,250 | $3,750 |
| Utilities (Note 16) | $717 | $1,710 |
| Payroll (Note 17) | $24,416 | $48,832 |
| Additional Funds (Note 18) | $5,166 | $8,376 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 (complete transfer or transfer of a majority interest) if single territory is sold to a transferee not currently in the Deka system. If transfer of a territory or studio is made to a transferee already in the Deka system, the transfer fee shall be $5,000 per territory. If multiple territories are sold to a single transferee not in the Deka system, the transfer fee will be $10,000 for the first transfer and $5,000 for any additional territories. If multiple territories are sold to multiple transferees not in the Deka system, the transfer fee will be $10,000 per transferee. $2,000 (transfer of a minority interest) |
| Renewal Fee | $3,500 |
| Technology Fee | $199 per month per executed franchise agreement from date of signing franchise agreement through the date of opening of the studio. $399 per month per franchise location thereafter. |
| Audit Fee | Cost of the audit plus any shortfall amount found to be due |
| Computer & Software Fees | Currently $219/month paid to our vendors |
| Minimum Local Marketing | Greater of $1,000 per month or 4% of Gross Studio Sales for studios with over 150 members. Greater of $2,000 per month or 4% of Gross Studio Sales for studios with 150 members or less. |
| Local Advertising Cooperative | As determined by the Cooperative |
| Music and Media Licensing Fee | Currently $35 paid directly to the Vendor. |
| Customer Service Center Fee | Currently estimated at $900 per month. |
| Conventions | $400 - $1,000. Currently $1000 with $250 rebated if you attend the annual convention, to offset travel expenses. |
| Secret Shopper Fee | Currently $75 per quarter plus the cost of the service. |
| Payment Convenience Fee | Up to 3.75% of total charge |
| Opening Deadline Extension Fee | $500 per month (or portion of month) for which the deadline is extended. |
| Development Delay Fees | 1-time 6 month extension: free. $500 per month for the first un-opened development unit and $300 per month for each additional un-opened development unit. |
| Interest and Late Fee | Lessor of 18% annually or the maximum permitted by law. Plus a $100 Late Fee per occurrence. |
| Business Listing & Promotion Fee | Up to $400 per month. Currently no charges fall in this category ($0). |
| Unauthorized or Unreported Payment Fine | $750 per occurrence |
| Quality Control Inspection Fee | Reasonable costs associated with inspection of your business (including transportation, meals, lodging and employee wages.) |
| Relocation Fee | $5,000 |
| Failure to Comply Fee | $500 for the first breach, $1,000 for the second breach, and $2,500 for the third breach and any other breaches |
| Proposed Location Evaluation Fee (On Site) | $500 per day per person for each full or partial day spent traveling and evaluating your proposed location plus all expenses including travel, lodging and meals. |
| Product Testing Costs | Reasonable out-of-pocket expenses and costs we incur, normally $2,500 or less |
| Prospect Generation Fee | The lesser of $10,000 or the actual amount charged to us by a third party per territory |
| Legal Fees and Costs | Actual amount of attorney fees and costs incurred |
| Taxes and Indebtedness | You will pay all taxes, assessments, liens, encumbrances, accounts, and other debts, regardless of their nature, assessed against you, the Franchise Premises, or inventory, materials, fixtures, and equipment used in your Franchise. |
| Sales, excise or gross receipts tax | Actual amount incurred. |
| Assistance Fee in the event of death or incapacity | Reimbursement for reasonable expenditures incurred including travel, lodging, per diem and wages. |
| Client Refunds | The amount of any fee we refund to a client |
| Other Eyelash Technician Training-On site | $400 per day per trainer for each full or partial day plus costs of training including travel, lodging and food per diem. |
| Additional Training Fees | Eyelash Technician: $400 per person; Manager Training: $350 per person; Master Lash Artist Training: $350 per person; Studio Lash Trainer Training: $350 per person. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3 days long |
| Classroom Training | 24 hours |
| On-the-Job Training | 0 hour |
| Training Location | virtual or in person (normally Pittsburgh, PA for initial operations training) |
| Additional Training | The franchisor offers optional additional training programs including Eyelash Technician Training ($400 per person), Manager Training ($350 per person), Master Lash Artist Training ($350 per person), and Studio Lash Trainer Training ($350 per person). These trainings may be virtual or in person, and franchisees are responsible for all associated costs, including training fees, travel, lodging, meals, and employee wages. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | generally a 1.5-mile radius |
| Description | Franchisees operate within a 'Protected Area,' typically a 1.5-mile radius around their approved studio location, which is an exclusive territory where the franchisor will not establish other Deka Lash outlets. The size of this area can vary based on market demographics. While the territory is exclusive for physical locations, it is not exclusive for marketing efforts, as advertising can extend beyond geographic boundaries. Franchisees are not required to meet specific sales volumes to maintain their territorial rights. A non-exclusive 'Designated Search Area' is provided to locate the business, which can become exclusive if part of an Area Development Agreement, though overlapping protective radii from other franchisees may still limit specific site selection. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | successive terms |
| Renewal Fee | $3,500 |
| Renewal Conditions | To renew, the franchisee must be in good standing and full compliance with the Franchise Agreement, satisfy all monetary obligations, provide notice 3-6 months before expiration, sign a general release, execute the then-current franchise agreement (which may have materially different terms), and successfully complete any required retraining at their expense. |
| Transfer Fee | $10,000 (complete transfer or transfer of a majority interest) if single territory is sold to a transferee not currently in the Deka system. If transfer of a territory or studio is made to a transferee already in the Deka system, the transfer fee shall be $5,000 per territory. If multiple territories are sold to a single transferee not in the Deka system, the transfer fee will be $10,000 for the first transfer and $5,000 for any additional territories. If multiple territories are sold to multiple transferees not in the Deka system, the transfer fee will be $10,000 per transferee. $2,000 (transfer of a minority interest) |
| Transfer Conditions | Franchisor approval is required for any transfer. Conditions include the franchisee being current on all monetary obligations and in full compliance with the agreement, and executing required transfer forms. The transferee must meet the franchisor's standards (educational, managerial, business, moral character, credit, financial resources), execute the then-current Franchise Agreement, pay the transfer fee (and potentially a prospect generation fee), complete initial training, obtain necessary licenses/permits, and secure lessor approval. The transfer must comply with all applicable laws, and the purchase terms must not impair the transferee's future operation. A general release from the transferring party is also required. |
| Termination for Cause | The franchisor may terminate immediately without opportunity to cure for reasons such as insolvency, abandonment (14 consecutive days or shorter period indicating no intent to continue), three or more repeated breaches within 12 months, material misrepresentation, failure to open or open without approval, seizure/foreclosure of the franchise, felony conviction or criminal misconduct relevant to operation, imminent danger to public health/safety, material and unfavorable conduct, attempt to repudiate the agreement, mutual agreement, unreported/misreported revenue, failure to pay suppliers over $5,000 for more than 60 days, failure to permit inspection/audit, or violation of confidentiality/non-compete covenants. For other breaches or monetary obligations more than 30 days past due, the franchisor may terminate after 30 days' written notice and opportunity to cure. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, the franchisee may not directly or indirectly offer or engage in eyelash extension services in the United States, its Territories, and internationally, except through the franchised business. After termination or expiration, for a period of two years, the franchisee may not directly or indirectly offer or engage in eyelash extension services within the Protected Area or within thirty (30) miles of its boundaries, or any other Protected Area franchised by the franchisor and in operation at that time. Additionally, for two years post-term, the franchisee may not solicit former clients from their prior franchised business for eyelash extension services within the Protected Area or 30 miles of its boundaries. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee or an approved, full-time general manager who has successfully completed initial training must directly supervise and control the franchise services. The franchisee must designate one owner with at least 10% ownership as the 'Principal Owner,' responsible for business affairs and communication with the franchisor. All owners must personally guarantee obligations, maintain confidentiality, and adhere to non-compete covenants. Employees and non-employed participants (e.g., family members) operating in the business must also sign confidentiality and non-competition agreements and comply with system policies. |
| Required Suppliers | Franchisees must purchase Deka labeled products, eyelash extensions, adhesives, resale products, and related products from DL Products, LLC or a designated vendor. Equipment and furniture must be purchased from a designated supplier or meet franchisor specifications. Computer hardware and specified software systems (POS, client management, scheduling) are required. A designated construction management company is required for build-out unless otherwise approved. Insurance policies must be from an A.M. Best “A” or better rated company. A designated vendor for music and media systems is required. The franchisor is an approved supplier for advertising and marketing templates. |
| Supply Restrictions | Franchisees must use specified suppliers for Deka labeled products, eyelash extensions, adhesives, resale products, equipment, furniture, computer hardware, and software. The franchisor or its affiliate, DL Products, LLC, is currently the only approved supplier for eyelash extension and related products and Deka labeled products. Franchisees may propose alternative suppliers, but they must be approved in writing by the franchisor, who may charge for testing and approval. |
| Franchisor Revenue from Suppliers | In the last fiscal year ending December 31, 2021, the franchisor earned $930,892 from required purchases or leases by franchisees, representing 11.5% of its total revenue. Additionally, its affiliate, DL Products, LLC, earned $2,955,206 from selling eyelash extensions and related products to franchisees. Designated suppliers also paid the franchisor $47,550 as sponsorship for the Annual Convention. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor offers indirect financing for the Initial Franchise Fee for additional units to franchisees who have been operating for at least 24 months. The down payment is 10% for individuals or 50% for entities, with the remaining amount financed at a 10% Annual Percentage Rate (A.P.R.) over 60 months. A personal guaranty is required, and if the franchisee is an entity, its owners must personally guarantee the debt. There are no prepayment penalties, but default leads to termination of the Franchise Agreement, payment of the entire amount due, and reimbursement of the franchisor's attorney fees and court costs. The franchisee waives the right to a jury trial, homestead and other exemptions, and notice of presentment, demand, and dishonor. |
Deka Lash Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Deka Lash Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Deka Lash System Growth
Deka Lash currently operates 101 franchised locations and 5 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 32 | 0 | 73 |
| 2020 | 19 | 10 | 86 |
| 2021 | 15 | 3 | 101 |
Transfers: 2 | Closures: 3
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by MG-CPA for year ending December 31.
Deka Lash Franchise — FAQ
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