How long must royalties be paid for a Deka Lash franchise?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Royalties must be paid for the term of the Agreement, unless otherwise agreed to in writing.
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 royalties for the entire term of the Franchise Agreement. The agreement does not specify a particular number of years for the term.
The royalty payment start date depends on whether the franchise is the franchisee's first unit or a subsequent one under an Area Development Agreement. For the first unit, royalties begin twelve months after the Franchise Agreement is executed, regardless of when the studio actually opens. For subsequent units under an Area Development Agreement, royalties start on the date the franchisee sells their first paid product, service, or membership.
These royalties are a recurring expense for the Deka Lash franchisee, impacting profitability throughout the franchise term. Prospective franchisees should clarify the typical length of the franchise agreement term with Deka Lash to fully understand the duration of their royalty obligations.