Where is the Development Area for a Deka Lash franchise described?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, we grant qualified third parties the right to develop a certain number of Franchised Businesses within a defined geographical area (the "Development Area") in accordance with a mandatory development schedule that must be strictly adhered to, with each Franchised Business within the Development Area being opened and operated utilizing the Marks and System pursuant to the terms and conditions set forth in our then-current form of franchise agreement (each, a "Franchise Agreement").
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Subject to the terms of this franchise agreement ("Agreement" or "Franchise Agreement"), we grant to you a Deka Lash franchise ("Franchised Business") using our system and our Marks in the protected area described in Schedule 1 ("Protected Area"). You agree to abide by the terms of this Agreement.
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- 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.
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I have received a disclosure document dated March 5, 2024 that included the following Exhibits:
Exhibit A State Addenda to the Disclosure Document Exhibit B Franchise Agreement Schedule 1 - Protected Area Schedule 2 - Holders of Ownership Interest in the Franchise Schedule 3 - State Addenda Exhibit C Area Development Agreement Appendix 1 - Data Sheet Appendix 2 - State Addenda Exhibit D List of State Administrators Exhibit E Registered Agents Exhibit F-1 Franchisor Addendum Exhibit F-2 Conditional Assignment of Lease and Telephone Number Assignment Exhibit F-3 Confidentiality and Non-Disclosure Agreement Exhibit F-4 Automatic Bank Draft Authorization Exhibit F-5 Deka Lash Closing Acknowledgments Exhibit F-6 SBA Addendum Exhibit G List of Current Franchisees Exhibit H List of Former Franchisees Exhibit I Financial Statements Exhibit J Table of Contents of Operations Manual Exhibit K Release Exhibit L Area Representative Disclosures Exhibit M State Effective Dates Exhibit N Receipt
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the specific location of the Protected Area for a single Deka Lash franchise is detailed in Schedule 1 of the Franchise Agreement. For multi-unit developers, the Development Area is referenced within the Area Development Agreement.
For a single-unit franchisee, the Protected Area typically extends around the Franchised Business, generally within a 1.5-mile radius. However, Deka Lash retains the right to modify the size of the Protected Area based on market demographics and development. This means that the exclusivity a franchisee receives can vary depending on the location and market conditions.
For multi-unit developers, the Development Area is established under the Area Development Agreement. The franchisee is granted the right to develop a certain number of Franchised Businesses within a defined geographical area. This agreement includes a mandatory development schedule that the franchisee must adhere to. Failure to meet the development schedule can result in termination of the agreement, and Deka Lash may then establish or license others to establish Deka Lash units within the previously reserved Development Area.
Prospective franchisees should carefully review Schedule 1 of the Franchise Agreement or the Area Development Agreement to understand the exact boundaries of their Protected Area or Development Area and the conditions that apply to it. It is also important to understand Deka Lash's rights to modify the Protected Area based on market conditions, as this could impact the franchisee's business.