How many days' notice does Deka Lash provide before increasing the Technology Fee?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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. |
| Development | |||
| Fee | |||
| Technology Fee | $199 per month per executed franchise agreement from date of signing franchise agreement through the date of opening of the studio. $399 per month per franchise location thereafter. | 5 th day of the month for the preceding month, or as specified in the operations manual. | If deemed necessary, we can change monthly fee once a calendar year with 30 days' notice. Any increase would be limited to cover costs of additional software made available to franchisees. |
| Computer & Software Fees | Currently $259/month paid to our vendors | Monthly | You must pay the monthly fee for the POS and other software we specify. This fee may vary based upon optional add-on service |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash can change the monthly Technology Fee once a calendar year, providing franchisees with 30 days' notice. The Technology Fee is $199 per month from the date of signing the franchise agreement through the studio's opening. After opening, the fee increases to $399 per month per franchise location.
Any increase to the Technology Fee is limited to covering the costs of additional software made available to Deka Lash franchisees. This means that Deka Lash cannot arbitrarily increase the fee for other reasons, providing some protection to franchisees.
Franchisees should note that the Technology Fee is in addition to other technology-related fees, such as the Computer & Software Fees, which are currently $259 per month paid to vendors. These fees cover the POS system and other specified software, and may vary based on optional add-on services selected by the franchisee.