What is the monthly Technology Fee for a Deka Lash franchise location after the studio opens?
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 must pay a Technology Fee. This fee is $199 per month from the effective date of the franchise agreement until the studio opens. After the Deka Lash studio opens, the Technology Fee increases to $399 per month per franchise location.
The Technology Fee is intended to cover Deka Lash's costs related to various platforms and support provided to the franchise system, including personnel expenses. In addition to the Technology Fee, franchisees are required to purchase licenses for Point-of-Sale (POS) software and any other software subscriptions that Deka Lash requires.
Deka Lash retains the right to modify the Technology Fee once per calendar year, but they must provide franchisees with 30 days' notice before implementing any changes. This means that while the fee is initially set at $399 per month after opening, it could increase in the future, impacting the franchisee's operating expenses. Franchisees should factor in potential fee increases when projecting their financial performance.