Are Deka Lash employees required to sign a covenant not to compete?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
You shall train your employees to competently and professionally carry out their duties and offer excellent customer service.
You shall ensure that your employees have any training, licenses, or certifications required by applicable law.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD pages 47–48)
What This Means (2024 FDD)
The 2024 Deka Lash Franchise Disclosure Document does not explicitly state that Deka Lash employees are required to sign a covenant not to compete. However, the document does state that the franchisee is responsible for training their employees to competently and professionally carry out their duties and offer excellent customer service. The franchisee is also responsible for ensuring that their employees have any training, licenses, or certifications required by applicable law.
While the FDD does not specify non-compete agreements for employees, it does include non-compete clauses for the franchisee. During the term of the agreement, the franchisee cannot offer or engage in eyelash extension services outside of the franchised business within the United States, its territories, and internationally. After the agreement expires or terminates, the franchisee is restricted for two years from offering eyelash extension services within the Protected Area or within 30 miles of its boundaries.
Because the FDD does not address non-compete agreements for Deka Lash employees, a prospective franchisee should directly ask Deka Lash whether such agreements are mandatory or standard practice. Understanding this will help in assessing employee relations and potential hiring challenges.