What is the monthly Deka Lash Technology Fee before the studio opens?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 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. |
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 of $199 per month from the date of signing the franchise agreement until the studio opens. This fee is per executed franchise agreement. 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 is limited to covering the costs of additional software made available to franchisees.
For a prospective Deka Lash franchisee, this means budgeting $199 per month for the Technology Fee during the pre-opening phase. This cost should be factored into the initial investment and working capital calculations. It's important to note that this fee starts accruing from the moment the franchise agreement is signed, regardless of how long it takes to open the studio. Franchisees should also be prepared for potential increases in the Technology Fee, although Deka Lash states that such increases would be tied to the provision of additional software.