After the Deka Lash agreement expires or terminates, what is the distance from a Deka Lash protected area in which a franchisee is restricted from offering eyelash extension services?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- b) Post-Term.
You will not, for a period of two years after expiration or termination of this Agreement, in the Protected Area or within thirty (30) miles of the boundaries of the Protected Area or another Protected Area franchised by us and in operation at that time, directly or indirectly, for a fee or charge, offer or engage in eyelash extension services.
- 12.2 No Solicitation of Customers.
You will not, for a period of two years after expiration or termination of this Agreement, in the Protected Area or within thirty (30) miles of the boundaries of the Protected Area, directly or indirectly solicit the patronage of any client served by your prior Franchised Business during the last 24 months that you were a franchisee, or such shorter time as you were a franchisee, for the purpose of offering such person or entity, for a fee or charge, eyelash extension services.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, a franchisee is restricted from offering eyelash extension services for a period of two years after the expiration or termination of the franchise agreement. This restriction applies within the franchisee's Protected Area and extends to a distance of thirty (30) miles beyond the boundaries of the Protected Area, as well as within thirty (30) miles of another Protected Area franchised by Deka Lash that is in operation at that time. This post-term covenant not to compete is in place to protect Deka Lash's market and other franchisees from unfair competition.
This non-compete clause prevents a former franchisee from leveraging the knowledge, customer relationships, and brand recognition gained during their time with Deka Lash to immediately start a competing business nearby. The 30-mile radius extends the protection beyond the immediate vicinity of the former franchise location, acknowledging that customers may travel some distance for these specialized services. The inclusion of other franchised Protected Areas in the restriction ensures that no franchisee can exploit proximity to another Deka Lash location after leaving the system.
Such non-compete agreements are common in franchising to safeguard the franchisor's and other franchisees' investments. Prospective Deka Lash franchisees should carefully consider the implications of this restriction, especially if they plan to remain in the same geographic area after their franchise agreement ends. They should evaluate whether the 30-mile radius would realistically prevent them from pursuing similar business opportunities and factor this into their decision to invest in a Deka Lash franchise.
In addition to the geographic restrictions, the FDD also states that for a period of two years after expiration or termination of the Franchise Agreement, the franchisee will not solicit the patronage of any client served by the prior Franchised Business during the last 24 months that they were a franchisee, or such shorter time as they were a franchisee, for the purpose of offering such person or entity, for a fee or charge, eyelash extension services.