What criteria does Deka Lash use to approve the Franchise Location?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.1 Location for Franchise Premises. You will operate your Franchised Business at the Franchise Location that we have approved as designated in Section 2 of the Schedule 1 of this Franchise Agreement.
We base approval on our site selection criteria in our Manual.
You must operate the Franchised Business only from the site we approve.
- 3.2 Permitted Uses. You may operate the Franchised Business only at the approved site and may not relocate without our approval.
You must sell approved products and provide approved services only at the Deka Lash studio you operate under a Franchise Agreement with us.
- 3.3 Relocation of the Franchised Business.
We will not normally approve the relocation of the Franchised Business unless there is a material change in economic or other factors affecting your outlet.
We will not normally allow you to open additional outlets within your Protected Area.
If you lose possession of the Location through no fault of your own, or if we give our approval, you may apply to us for our approval to relocate your business to another site in the designated area, provided such a site is available.
We will approve or disapprove the relocation of your outlet, typically within 14 business days of your submission of the required site selection documents required by us.
- 3.4 Protected Area/Exclusive Territory. There will be a "Protected Area" around your Franchised Business as defined 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.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the approval of a franchise location is based on the site selection criteria outlined in their Manual. The franchisee must operate the Deka Lash business exclusively from the approved site, and relocation requires further approval from Deka Lash.
Relocation of the Franchised Business is not normally approved unless there is a significant change in economic or other factors affecting the outlet. Similarly, opening additional outlets within the Protected Area is generally not allowed. However, if the franchisee loses possession of the location through no fault of their own, or with Deka Lash's approval, they may apply to relocate to another site within the designated area, subject to Deka Lash's approval. Deka Lash typically makes a decision on relocation within 14 business days of receiving the required site selection documents.
The Franchise Disclosure Document also defines a "Protected Area" around the Franchised Business, as detailed in Schedule 1, Section 3. This area is generally a 1.5-mile radius, but Deka Lash reserves the right to modify the size of the Protected Area based on the demographics and development of each market. This means that while a standard radius is used, Deka Lash retains the flexibility to adjust the protected area based on specific market conditions, which could impact the franchisee's market exclusivity.
In summary, the FDD indicates that Deka Lash's approval of a franchise location hinges on criteria detailed in their Manual, with considerations for relocation and protected areas subject to their discretion. A prospective franchisee should carefully review the site selection criteria in the Manual and discuss the specifics of the Protected Area with Deka Lash to fully understand the location-related terms of the franchise agreement.