Deka Lash Franchise Costs $391K (2023 Profits & Stats)

This article was updated with the 2023 Franchise Disclosure Document

A recent franchise in the beauty sector, Deka Lash has expanded aggressively since it started franchising in 2016 and now has more than 120 franchised studios in the US and Canada.

So if you’re looking to get into the beauty franchise industry, Deka Lash may sound like a great option. Yet with an estimated initial investment of $391,000, you may want to know if that’s a profitable business.

In other words: how much profits can you really make with a Deka Lash franchise?

In this article we are looking at Deka Lash and its Franchise Disclosure Document to find out how much it really costs, how much profits you can make as a franchisee and whether it’s a good investment. Let’s dive in!

Key stats

Franchise fee$59,900
Royalty fee6.0%
Marketing fee5.0%
Investment (mid-point)$391,000
Revenue per unit$369,000
Revenue per sq. ft.[franchise_value_revenue_per_sq_ft]
Sales to investment ratio0.9x
Payback period[franchise_value_investment_payback]
Minimum net worth$250,000
Minimum liquid capital$75,000
Source: FDD 2023

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What is Deka Lash?

Deka Lash is a leading beauty company offering customized lash extensions, brow lamination services and high-end beauty products.

Michale and Jennifer Blair founded the beauty brand in 2012 to make lash extensions easily accessible to consumers across the US and Canada. 

Headquartered in Pennsylvania, the company offers online and in-studio proprietary lash care products and has been franchising since 2016. 

Today, Deka Lash has over 120 franchised studios in the US and Canada. 

Deka Lash: pros and cons

Pros

  • Recurring revenue model: the monthly membership model is a convenient way to earn predictable income from repeat clients. 
  • Financial support: Deka Lash has financing options to get franchises up and running by covering the cost of equipment, franchise fee, inventory, startup costs and accounts receivable.
  • Exclusive territories: franchisees operate in fixed locations without competition from other Deka Lash studios. 
  • Multiple income sources: franchisees earn from the tested and proven monthly membership model and product sales. 
  • Innovative technology: the brand uses future-focused innovations to support clients, franchisees and business owners. The concept is built around optimization with a reception-less business model thanks to the AI program, dekaAI and the inbound/outbound Customer Service Center to reduce operating costs
  • Future-oriented: the franchisor’s Research and Development Department is always looking to the future to identify new services and help franchisees stay ahead of the competition. 
  • Lead generation programs and in-house marketing tools: the franchisor provides valuable marketing, advertising and lead generation tools to help franchisees attract traffic. The franchisor tailors the marketing tools by territory, studio location, competition and population. 
  • Semi-passive ownership: the franchisor allows semi-absentee ownership, with business owners relying on optimization tools and the corporate team to handle the daily operations. 
  • Intensive, in-house training: the franchisor provides comprehensive initial on-site and ongoing training to help new franchises thrive.
  • No mandatory lash experience required: franchisees don’t need a lash extension experience or beauty background to own a Deka Lash franchise. The dedicated corporate team trains, guides and hires a brilliant workforce. 
  • Scalable business: the multi-unit model allows franchisees to scale their businesses and achieve financial goals.  

Cons

  • Minimum employee requirement: 6-8 employees are required to operate a Deka Lash franchise. 
  • Can’t be run from home or as a mobile unit: Deka Lash franchisees must operate from physical locations such as office spaces, retail facilities, or warehouses. 
  • Not a part-time opportunity: the franchisor doesn’t allow part-time ownership. 
  • Competition from similar lash extension studios like The Lash Lounge & Amazing Lash Studio to name a few

Deka Lash franchise cost

You have to invest around $391,000 to open a Deka Lash franchised studio.

This is an average; indeed, it varies based on many factors, such as the location of your franchised studio, its size, and other factors.

Startup costs

In addition to the initial franchise fee of $59,900, which you must pay to the franchisor, you would also pay for the leasehold improvements, furniture and fixtures, signage, professional fees, insurance, etc.

Here’s the full breakdown of costs:

Type of ExpenditureLowHigh
Initial franchise fee$59,900$59,900
Leasehold improvements$0$211,200
Insurance and permits$3,250$7,500
Signage$5,200$12,400
Professional fees$1,250$3,750
Additional Funds- 3 months$5,166$8,376
Other$137,446$267,399
Total$212,212$570,525
Source: Franchise Disclosure Document (2023)

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Deka Lash franchise revenue

On average, a Deka Lash franchise makes $369,000 in sales per year (or $295 in revenue per square foot).

That’s the average revenue per franchised studio for 82 studios that were open for all of 2022. This is a significant increase vs. 2021 (+13%, $325,722) as the franchise recovered from COVID-19.

It’s also interesting to note that 56% of the revenue comes from memberships (vs. one-off sales) as disclosed in the Franchise Disclosure Document below:

Deka Lash franchise profits

A Deka Lash franchised salon makes $59,000 in profits per year on average. This corresponds to a 16% EBITDA margin.

Note that Deka Lash doesn’t provide any detailed information about the financial performance of its franchises in its latest Franchise Disclosure Document. Instead we had to make assumptions which we have summarized below.

Profit and lossAmount% Revenue
Revenue$369,064100%
COGS$(18,453)5%
Gross Profit$350,61095%
Staff(147,625)40%
Royalties(22,144)6%
Rent(66,596)18%
Marketing(18,453)5%
Other Opex(36,906)10%
EBITDA$58,88616%
Source: FDD 2023, estimates

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Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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