What is the monthly Deka Lash Technology Fee per franchise location after opening the studio?
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. | 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 services that you may select. |
| Minimum Local | Minimum of $2,000 per month. | When due as billed by local advertiser. | If you fail to spend the minimum amount on Local Marketing, we have the right to require you to pay the unspent required balance to the Brand Development Fund. |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, franchisees must pay a Technology Fee. This fee is $199 per month from the date of signing the franchise agreement until the studio opens. After the studio opens, the Technology Fee increases to $399 per month per franchise location.
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 to the Technology Fee would be limited to cover the costs of additional software made available to franchisees. This means that while the fee can change, it is tied to specific improvements or additions to the technology provided by Deka Lash, offering some transparency and justification for potential increases.