What is the relationship between the Deka Lash Brand Development Fee and the Brand Development Fund?

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g) ## 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 is the relationship between the Deka Lash Brand Development Fee and the Brand Development Fund?

Answer from 2024 FDD Document

ITEM 6 OTHER FEES

What This Means (2024 FDD)

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.