Besides the Technology Fee, what other recurring technology-related fee does a Deka Lash franchisee pay?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
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ITEM 6 OTHER FEES
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty (Notes 1 and 2) | 6% of Gross Studio Sales or $600 per month, whichever is greater. After your 1 st year of operations, the minimum Royalty Fee increases to $1,000 per month. | As specified in the operations manual. Currently we collect royalties twice a month on the 5 th day following the end of each semi-monthly period. | |
| Brand | The greater of 3% of Gross Studio Sales or, after the 1 st year of operations, $500 per month. | As specified in the operations manual. Currently we collect royalties twice a month on the 5 th day following the end of each semi-monthly period. | You are required to contribute the specified Brand Development Fee into the Brand Development Fund (the "Brand Fund"). We are not obligated to maintain the Brand Fund in a separate bank account nor use the entirety of amounts collected within the same calendar year. However, we will account for collections and expenditures and track the Brand Fund balance separately. |
| Development | |||
| Fee | |||
| 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. | 5 th day of the month for the preceding month, or as specified in the operations manual. |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees are required to pay a Computer & Software Fee in addition to the Technology Fee. The Computer & Software Fees are currently $259 per month, paid to Deka Lash's vendors.
This fee covers the costs associated with the POS (Point of Sale) system and other software that Deka Lash specifies for franchisees to use in their operations. The FDD notes that the Computer & Software Fees may fluctuate depending on any optional add-on services the franchisee chooses to include.
It's important for prospective Deka Lash franchisees to factor in both the Technology Fee and the Computer & Software Fees when assessing their ongoing operational costs. Understanding what software is included and whether there are opportunities to add optional services will help in budgeting and managing expenses.