Where is the Deka Lash Designated Search Area defined?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
e Date of your Franchise Agreement you are required to have minimum Gross Revenue of $15,000 per month in a Territory or a minimum of 75 members in our membership program in a Territory, or we may terminate your Franchise Agreement.
- 3.8 Non-Exclusive Designated Search Area. Unless specified otherwise, we will provide you with a non-exclusive "Designated Search Area" as defined in Section 1 of Schedule 1 of your Franchise Agreement within which you must locate your Franchised Business.
- 3.9 Exclusive Designated Search Area. If your Designated Search Area contains exclusive rights, such as being part of an Area Development Agreement, while we will not license anyone the right to open or operate a Franchised Business that is physically located within that Exclusive Designated Search Area, this does not mean you can open or operate a Franchised Business anywhere within that Exclusive Designated Search Area. If a franchisee secures a location near your Exclusive Designated Search Area, and their associated protective radius (generally 1.5 miles) overlaps into your Exclusive Designated Search Area, you will not be able to locate a studio within the protected radius that overlaps your Exclusive Designated Search Area. We will let you know of any existing studios that have protective radius overlapping into your Exclusive Designated Search Area prior to execution of this agreement, but we make no warranties that a franchisee will not subsequently choose a location that creates a protective radius that overlaps into the Exclusive Designated Search Area.
- 3.10 Protected Area Temporary Protection. We will not define a Franchise Location or Protected Area until you have an executed lease. However, upon the submission of a fully executed Letter of Intent ("LOI") to us for a proposed location for the Franchised Business that we have approved, we will create a temporary protected radius around said proposed location within which we will not locate any other Franchised Business. We will grant this protected radius for a period of up to 60 days to allow you to negotiate and finalize a lease for the proposed location. While you may have multiple fully executed LOI's, we will only grant a protected radius around one of the proposed locations you designate.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the Designated Search Area is defined in Section 1 of Schedule 1 of the Franchise Agreement. The document specifies that Deka Lash will provide franchisees with a non-exclusive Designated Search Area, unless specified otherwise. Within this area, the franchisee is required to locate their Franchised Business.
It's important to note that if a franchisee secures a location near another franchisee's Exclusive Designated Search Area, and their protective radius (generally 1.5 miles) overlaps, the new franchisee will not be able to locate a studio within the overlapping protected radius. Deka Lash will inform franchisees of any existing studios with protective radii overlapping into their Exclusive Designated Search Area before the agreement is executed. However, Deka Lash does not guarantee that a franchisee will not subsequently choose a location that creates an overlapping protective radius.
Furthermore, Deka Lash does not define a Franchise Location or Protected Area until the franchisee has an executed lease. Upon submission of a fully executed Letter of Intent (LOI) for a proposed location that Deka Lash has approved, a temporary protected radius will be created around the proposed location, preventing Deka Lash from locating any other Franchised Business within that radius for up to 60 days. Once the lease is approved, fully executed, and submitted, the Franchise Location and associated Protected Area will be defined in Section 2 and Section 3 of Schedule 1 to the Franchise Agreement, superseding the temporary protected radius.