When does the Deka Lash franchisee pay the $199 per month technology fee?
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 are required to pay a technology fee. Specifically, the franchisee must pay $199 per month per executed franchise agreement from the effective date of the franchise agreement through the date of opening the studio. After the studio opens, the technology fee increases to $399 per month per franchise location.
The technology fee is intended to cover Deka Lash's costs associated with various platforms and support, including personnel expenses, to provide support to the franchise system. In addition to the technology fee, franchisees are also required to purchase a license for the Point-of-Sale software and other software subscriptions that Deka Lash requires.
Deka Lash retains the right to modify the technology fee once each calendar year, provided they give franchisees 30 days' notice. This means that the franchisee should be prepared for potential increases in this monthly fee, which could impact their operating costs and overall profitability. It is important for prospective franchisees to factor in these potential changes when evaluating the financial feasibility of a Deka Lash franchise.