What is the Brand Development Fee for a Deka Lash franchise after being open for one year?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
m Royalty Fee increases to the greater of: (i) 6% of all Gross Revenue; or (ii) $1,000 per month.
- c) Payment Dates. As specified in the Operations Manual.
- d) Lifetime of Franchise Agreement. Royalties must be paid for the term of t
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees must pay a Brand Development Fee. Before a Deka Lash studio has been open for a year, the franchisee pays 3% of Gross Studio Sales. After the studio has been open for one year, the franchisee must pay the greater of 3% of Gross Studio Sales or $500 per month for the Brand Development Fund.
The Brand Development Fund is used for promotional events, graphic design, photography, video production, branding, public relations, marketing, promotional materials, media, production, and any other activity Deka Lash believes will benefit the brand. This includes the creation, maintenance, optimization, and advertising of the company website or other websites, pay-per-click advertising, and administration of such, creating, conducting, and managing social media, creating, maintenance, and promotion of appointment setting software, contests, direct mailers, promotions, and providing promotional materials to franchisees.
Deka Lash retains control over all media and marketing programs, and has the final decision on all promotions, creative concepts, and media. While franchisees contribute to the Brand Development Fund, Deka Lash does not guarantee that franchisees will benefit in proportion to their contributions. Franchisees can request an annual unaudited financial statement of the Brand Development Fund, available 120 days after Deka Lash's fiscal year end, at the expense of the Brand Development Fund.
Funds contributed to the Brand Development Fund from digital deals and promotions do not count towards your Brand Development Fees. Unless Deka Lash consents in writing, franchisees and their employees must not conduct or be involved in any digital marketing related to the Deka Lash brand, marks, or their studio. If Deka Lash permits digital marketing, franchisees must comply with their policies, and Deka Lash may withdraw approval at any time.