After the Deka Lash agreement expires or terminates, what geographic area restricts a franchisee 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.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a franchisee is restricted from offering eyelash extension services for two years after the expiration or termination of the Franchise Agreement. This restriction applies within the franchisee's Protected Area and extends to a 30-mile radius from the boundaries of that Protected Area, as well as within 30 miles of any other Deka Lash franchise's Protected Area that is operational at the time of termination or expiration.
This non-compete clause prevents former franchisees from directly competing with Deka Lash in a defined geographic region. The restriction is in place to protect Deka Lash's market share and brand recognition. It ensures that former franchisees cannot leverage the knowledge and experience gained while operating a Deka Lash franchise to unfairly compete with existing franchisees or the franchisor itself.
For a prospective franchisee, this means that upon leaving the Deka Lash system, they will be unable to operate a competing eyelash extension business within the specified area for two years. This could significantly impact their ability to continue in the same line of work immediately after the franchise agreement ends. Franchisees should carefully consider this restriction and its potential impact on their future career plans before investing in a Deka Lash franchise.
It is common in the franchise industry to have post-term non-compete agreements. The specific terms, such as the duration and geographic scope, can vary. The Deka Lash agreement appears to be fairly standard, but prospective franchisees should compare these terms to those of other franchise opportunities to fully understand the implications.