What is the monthly Technology Fee for a Deka Lash franchise before the studio opens?
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. |
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees must pay a Technology Fee. Before the studio opens, the Technology Fee is $199 per month per executed franchise agreement. This fee starts from the date of signing the franchise agreement and continues until the studio opens.
The Technology Fee is due on the 5th day of the month for the preceding month, or as specified in the operations manual. Deka Lash retains the right to change the monthly fee once per calendar year, providing 30 days' notice. Any increase would be limited to cover the costs of additional software made available to franchisees.
In addition to the Technology Fee, Deka Lash franchisees also pay a Computer & Software Fee, which is currently $259 per month paid to vendors. This covers the POS system and other software specified by Deka Lash, and may vary based on optional add-on services selected by the franchisee. It is important for prospective franchisees to factor in both the Technology Fee and the Computer & Software Fees when assessing the ongoing costs of operating a Deka Lash franchise.