Bottom line
- Total investment $286K – $461K including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $282K/year.
- Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 126 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Deka Lash unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Deka Lash units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$790K
on $3.9M purchase
Total debt
$3.2M
SBA $2.0M + senior + seller note
Overview
About
Franchisees operate lash extension and beauty service studios, performing services like lash extensions, lash lifts, and related treatments for retail clients. Day-to-day operations include client bookings, service delivery, staff management, inventory control, and marketing within their protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 24 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Deka Lash shows system contraction and profitability opacity, presenting moderate-to-cautious risk for franchisees despite protected territory and no litigation.
Score breakdown · what drove the 46 / 100 rating
- 01MEDUnit count declined 4.6% YoY (124 units) — indicates system contraction rather than growth
- 02MEDNet income not disclosed in FDD — cannot assess actual profitability or ROI despite $282k avg revenue
- 03MINORHigh initial investment ($285.9k-$460.8k) with royalty floor of $1,000/month minimum creates fixed cost burden
- 04MINORAverage revenue of $282k may not support $1,000/month minimum royalty + operating costs in mature/declining market
- 05MINOR6% royalty + $1,000 minimum royalty structure heavily favors franchisor over struggling locations
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Deka Lash · FDD (2025) PDF