Which covenants in the Deka Lash franchise agreement survive the termination or expiration of the agreement?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- j) Adhere to the provisions of the post-term covenants not to compete and not to solicit;
- k) Abide by any other covenant in this Agreement that requires performance by you after you are no longer a franchisee; and
- I) Execute, from time to time, any necessary papers, documents, and assurances to effectuate the intent of this Section 11.
12. NON-COMPETE AND NO SOLICITATION.
12.1 Non-Compete.
- a) In-Term.
You will not, during the Term of this Agreement, in the United States, its Territories, and internationally, directly or indirectly offer or engage in eyelash extension services except in the provision of such services through the Franchised Business.
- 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.
- 12.3 Non-Disparagement.
You shall not, at any time during the Term and thereafter, make statements or representations, or otherwise communicate, directly or indirectly, in writing, orally, or otherwise, or take any action which may, directly or indirectly, disparage us, our franchisees, or any of its
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, several obligations remain in effect even after the franchise agreement expires or is terminated. These include adhering to post-term covenants not to compete and not to solicit, fulfilling any covenant in the agreement that requires performance after the franchisee is no longer affiliated with Deka Lash, and executing necessary documents to ensure the intent of Section 11 of the agreement is carried out.
Specifically, the franchisee is prohibited from offering or engaging in eyelash extension services for two years after the agreement's expiration or termination. This restriction applies within the Protected Area or within thirty (30) miles of its boundaries, as well as near any other Deka Lash franchise in operation at that time. Additionally, for two years post-termination, the franchisee cannot solicit the patronage of any client served by their former Deka Lash business during the last 24 months of operation, aiming to prevent the diversion of established customer relationships.
Furthermore, the franchisee is barred from making any disparaging statements or representations about Deka Lash, its franchisees, or its employees, both during the term of the agreement and indefinitely thereafter. This non-disparagement clause ensures the brand's reputation remains protected even after the franchise relationship concludes. These stipulations collectively aim to protect Deka Lash's market position, customer base, and brand reputation beyond the duration of the franchise agreement.