How often does Deka Lash currently collect royalty fees?
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. |
| Developme |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, royalty fees are collected twice a month. Specifically, Deka Lash collects royalties on the 5th day following the end of each semi-monthly period.
In practical terms, this means a Deka Lash franchisee must ensure that they have calculated and remitted their royalty payments to Deka Lash twice per month. These payments are based on 6% of Gross Studio Sales or a minimum of $600 per month, whichever is greater, but after the first year of operations, the minimum royalty fee increases to $1,000 per month.
Franchisees should be aware of the due dates to avoid late payment penalties. Paying royalties via ACH electronic funds transfer is required. Additionally, the Brand Development Fee, which is the greater of 3% of Gross Studio Sales or $500 per month after the 1st year, is also collected twice a month on the same schedule as the royalty fees.