What is the monthly Deka Lash Technology Fee after 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. 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.
This means that a Deka Lash franchisee will see their monthly Technology Fee double once their studio is operational. This ongoing fee is intended to cover the costs of technology and software provided by Deka Lash to support the franchise.
It's important to note that Deka Lash retains the right to change this monthly fee once per calendar year, providing 30 days' notice. Any increase would be limited to covering the costs of additional software made available to franchisees. This clause protects Deka Lash from rising technology costs, but it also introduces a degree of uncertainty for the franchisee, who must factor in potential fee increases when budgeting.