After the Deka Lash agreement expires or terminates, what is the restricted radius around the Protected Area where franchisees cannot offer 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 Deka Lash's 2024 Franchise Disclosure Document, after the franchise agreement expires or terminates, a franchisee is restricted from offering or engaging in eyelash extension services for a period of two years. This restriction applies within the franchisee's Protected Area and extends to a radius of thirty (30) miles beyond the boundaries of the Protected Area, as well as within thirty miles of another Deka Lash Protected Area that is in operation at that time.
This non-compete clause prevents former franchisees from directly competing with Deka Lash within a defined geographical area for a specified time. The restriction covers offering eyelash extension services for a fee or charge. This means a former franchisee cannot open a competing business or work for another business that offers similar services within the restricted zone.
The non-compete agreement also includes a non-solicitation clause, which prevents the franchisee from soliciting customers of their former Deka Lash franchise. This restriction applies to clients served by the franchise during the last 24 months of operation. The non-solicitation clause is in effect for two years after the expiration or termination of the franchise agreement.
These post-term restrictions are designed to protect Deka Lash's market share and customer base. Prospective franchisees should carefully consider the implications of these restrictions, as they could significantly limit their business opportunities after leaving the Deka Lash system. Franchisees should consult with a legal professional to fully understand the scope and enforceability of these clauses in their specific jurisdiction.