What is the definition of 'Technology Fee' for a Deka Lash franchise?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
r any other promotional sources as required by us. Any Business Listing & Promotion Fees will be applied against your Local Marketing Requirement. If deemed necessary by us, we can change the Business Listing & Promotion Fee maximum per month once each calendar year with 30 days' notice to you.
- 4.12 Technology Fee. You must pay to us when billed $199 per month per executed franchise agreement from the effective date of this franchise agreement through the date of opening of the studio. $399 per month per franchise location thereafter. The technology fee is to cover our costs associated with various platforms and support, including personnel e
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 Technology Fee. This fee is $199 per month per executed franchise agreement from the effective date of the agreement until the studio opens. After the studio opens, the fee increases to $399 per month per franchise location.
The Technology Fee covers Deka Lash's costs related to various platforms and support, including personnel expenses, to provide support to the franchise system. In addition to the Technology Fee, franchisees are required to purchase a license for the Point-of-Sale (POS) software and any other software subscriptions that Deka Lash requires.
Deka Lash retains the right to change the Technology Fee once per calendar year, provided they give franchisees 30 days' notice. This means that the fee could increase, impacting the franchisee's monthly expenses. It is important for prospective franchisees to factor in potential increases when assessing the financial viability of the franchise.