What is the due date for the Deka Lash Brand Development Fee?
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. |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the Brand Development Fee is due as specified in the operations manual. Currently, Deka Lash collects royalties, which includes the Brand Development Fee, twice a month on the 5th day following the end of each semi-monthly period.
For a Deka Lash franchisee, this means that a portion of their gross sales will be allocated to the Brand Development Fund, which is used for marketing and promoting the Deka Lash brand. The amount is the greater of 3% of Gross Studio Sales or, after the 1st year of operations, $500 per month. These payments are collected twice monthly, adding to the ongoing operational costs.
It's important to note that Deka Lash is not obligated to maintain the Brand Development Fund in a separate bank account nor use the entirety of amounts collected within the same calendar year. However, Deka Lash will account for collections and expenditures and track the Brand Fund balance separately. Franchisees should review the operations manual for the most up-to-date specifics on payment procedures and reporting related to the Brand Development Fund.