How often are Deka Lash royalties currently collected?
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. |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, royalties are currently collected twice a month. These payments are due on the 5th day following the end of each semi-monthly period, as specified in the operations manual.
In practical terms, this means a Deka Lash franchisee must calculate and remit royalty payments to Deka Lash twice per month. The royalty is 6% of Gross Studio Sales or $600 per month, whichever is greater. After the first year of operations, the minimum royalty fee increases to $1,000 per month.
The Brand Development Fee is also collected twice a month on the 5th day following the end of each semi-monthly period. This fee is the greater of 3% of Gross Studio Sales or, after the 1st year of operations, $500 per month. Deka Lash requires franchisees to execute an Automatic Bank Draft Authorization and pay most fees, including the Royalties and Brand Development Fee, via ACH electronic funds transfer.