What is an Exclusive Designated Search Area for Deka Lash?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, an Exclusive Designated Search Area means that while Deka Lash will not license anyone else the right to open or operate a Franchised Business physically located within that Exclusive Designated Search Area, it does not guarantee that a franchisee can open or operate a Franchised Business anywhere within that Exclusive Designated Search Area.
This means that even with an Exclusive Designated Search Area, a Deka Lash franchisee's ability to secure a specific location within that area is not guaranteed. If another franchisee secures a location nearby, and their protected radius (typically 1.5 miles) overlaps into the Exclusive Designated Search Area, the new franchisee will not be able to locate a studio within the overlapping protected radius.
Prior to the execution of the franchise agreement, Deka Lash will inform the franchisee of any existing studios with protected radii overlapping into their Exclusive Designated Search Area. However, Deka Lash does not guarantee that a franchisee will not later choose a location that results in an overlapping protected radius. This highlights the importance of carefully researching and selecting a location, even within an exclusive search area, to minimize potential conflicts with other franchisees.