Can Deka Lash alter a franchisee's Protected Area if the population increases?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Protected Area. There will be a "Protected Area" around your Franchised Business as stated in Schedule 1, Section 3. The area or population included in each Protected Area will vary. The Protected Area is generally a 1.5-mile radius. We reserve the right to vary the size of the Protected Area based on the demographics and development of each market. For example, in densely populated urban areas, the Protected Area may be smaller than a 1.5-mile radius. We may not alter your Protected Area without your consent, even if the population in your Protected Area increases.
Exclusive Territory. Your Protected Area will be an exclusive territory in which we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks within the Protected Area of your Franchised Business.
Source: Item 12 — TERRITORY (FDD pages 40–44)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash will not alter a franchisee's Protected Area without their consent, even if the population in the Protected Area increases. The Protected Area is defined in Schedule 1, Section 3 of the Franchise Agreement and is typically a 1.5-mile radius, though Deka Lash reserves the right to vary the size of the Protected Area based on the demographics and development of each market. For example, in densely populated urban areas, the Protected Area may be smaller than a 1.5-mile radius.
Even though Deka Lash will not alter the Protected Area without consent due to population increases, the document also states that the Protected Area is not exclusive for marketing purposes. This means that while another Deka Lash franchise cannot be opened within the franchisee's Protected Area, marketing efforts are not restricted to that specific geographic boundary.
It is important for a prospective franchisee to understand the terms and conditions related to the Protected Area, as it directly impacts the geographic exclusivity and potential customer base for their Deka Lash studio. Franchisees should review Schedule 1 of the Franchise Agreement carefully to understand the specific boundaries of their Protected Area and any factors that may influence its size or scope.