When does the royalty start date begin for a Deka Lash franchisee's first unit?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
4.6 Royalty.
- a) Royalty Start Date. For your first unit, royalties begin twelve (12) months after you execute this Agreement, regardless of when you actually open. If this agreement is signed as the second or subsequent unit in an Area Development Agreement, royalties begin the date you sell your first paid product, service, or membership ("Location Start Date").
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the royalty start date for a franchisee's first unit begins twelve months after the Franchise Agreement is executed. This applies regardless of when the Deka Lash studio actually opens for business.
However, there is an exception for franchisees who sign the agreement as the second or subsequent unit in an Area Development Agreement. In this case, the royalty start date is the date the franchisee sells their first paid product, service, or membership, referred to as the "Location Start Date".
This distinction is important for prospective franchisees to understand, as it affects when they will begin paying royalties to Deka Lash. Franchisees should factor this into their financial projections and business planning. It is also important to note that the royalty amount is the greater of 6% of all Gross Revenue or $600 per month, which increases to $1,000 per month after the second year of operations.