Where in the Deka Lash Franchise Agreement is the Designated Search Area defined?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
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.
Exclusive Designated Search Area. If your Designated Search Area contains exclusive rights, such as being part of an Area Development Agreement, 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 m
Source: Item 12 — TERRITORY (FDD pages 40–44)
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. Unless specified otherwise, Deka Lash provides franchisees with a non-exclusive Designated Search Area within which they must locate their Franchised Business.
For franchisees entering into an Area Development Agreement, the document specifies that Deka Lash will not license anyone the right to open or operate a Franchised Business physically located within the Exclusive Designated Search Area. However, this does not guarantee the franchisee can operate a Franchised Business anywhere within that Exclusive Designated Search Area.
It is important to note that if a franchisee secures a location near the Exclusive Designated Search Area, and their protected radius (typically 1.5 miles) overlaps, the new Deka Lash studio cannot be located within the overlapping protected radius. Deka Lash states they will inform franchisees of any existing studios with overlapping protective radiuses before the agreement is executed, but they do not guarantee that a franchisee will not later choose a location that creates an overlap.