What is the due date for the Deka Lash Royalty 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 |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the Royalty Fee is due as specified in the operations manual. Currently, Deka Lash collects royalties twice a month on the 5th day following the end of each semi-monthly period.
The Royalty Fee is 6% of Gross Studio Sales or $600 per month, whichever is greater. After the first year of operations, the minimum Royalty Fee increases to $1,000 per month. This means that even if a Deka Lash franchise location has low sales, the franchisee must still pay at least $600 (increasing to $1,000 after the first year) as a royalty fee.
Franchisees should be aware of these payment terms and ensure they have sufficient cash flow to meet these obligations. The semi-monthly payment schedule could require more frequent monitoring of sales and expenses to ensure timely royalty payments. It is also important to note that the operations manual ultimately dictates the due date, and Deka Lash could change this with updates to the manual.