Besides the rights granted in Section 1 of the Deka Lash agreement, does Deka Lash or its affiliates reserve any other rights?

According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash and its affiliates retain several rights beyond those explicitly granted to the franchisee in Section 1 of the franchise agreement. These reserved rights cover various aspects of the business, providing Deka Lash with considerable flexibility and control over its brand and distribution channels.

Specifically, Deka Lash reserves the right to sell approved products and services through alternative channels of distribution, such as the internet, using their principal trademarks or different trademarks, without compensating the franchisee for orders solicited or accepted within the franchisee's territory. They can also acquire or be acquired by competing systems or third parties, even those with units within a franchisee's protected area. Furthermore, Deka Lash can develop and license other business systems, even those that distribute similar products or services under different names or marks. They also retain the right to establish policies regarding the acceptance and reimbursement of gift certificates, gift cards, memberships, discounts, coupons, or promotions.

The agreement explicitly states that franchisees have no rights to distribute products through alternative channels or share in any proceeds from sales through those channels. Deka Lash also reserves all other rights not expressly granted to the franchisee in the agreement. This broad reservation of rights underscores that the rights granted to the franchisee are non-exclusive, and Deka Lash maintains significant control over the Deka Lash brand and its distribution methods.

For a prospective Deka Lash franchisee, this means that Deka Lash can compete with them through online sales or other channels, and the franchisee will not receive any compensation for those sales. Deka Lash also has the freedom to develop competing brands or be acquired by a competitor, which could impact the franchisee's business. It is important for potential franchisees to carefully consider these reserved rights and understand their implications before investing in a Deka Lash franchise.