What is the due date for Deka Lash royalty payments?
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. |
| Developme |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, royalty payments are 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.
In addition to the royalty fee, Deka Lash franchisees must also pay a Brand Development Fee. This fee is the greater of 3% of Gross Studio Sales or $500 per month after the 1st year of operations. Like the royalty fee, the Brand Development Fee is collected twice a month on the 5th day following the end of each semi-monthly period, as specified in the operations manual.
Franchisees should note that these due dates and amounts are current as of the 2024 FDD but are subject to change as specified in the operations manual or through amendments to the franchise agreement. It is important for prospective franchisees to carefully review the operations manual and franchise agreement for the most up-to-date information on royalty and other fees.