What is the total monthly technology-related fees a Deka Lash franchisee pays after the studio opens?
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. | 5 th day of the month for the preceding month, or as specified in the operations manual. |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees pay two recurring monthly fees related to technology after their studio opens. The first is a Technology Fee of $399 per month per franchise location. This fee is due on the 5th day of the month for the preceding month, or as specified in the operations manual. Deka Lash can change this monthly fee once a calendar year with 30 days' notice, and any increase would be limited to cover costs of additional software made available to franchisees.
In addition to the Technology Fee, franchisees also pay Computer & Software Fees, which are currently $259 per month paid to Deka Lash's vendors. This fee is paid monthly for the POS and other software Deka Lash specifies. The document notes that this fee may vary based upon optional add-on services that the franchisee may select.
Combining these two fees, a Deka Lash franchisee can expect to pay $658 per month for technology-related expenses after the studio opens, though this amount could increase if the franchisee opts for additional software services. Prospective franchisees should consider these ongoing technology costs when evaluating the overall financial investment required to operate a Deka Lash franchise.