Where in the Deka Lash Franchise Agreement is the Protected Area stated?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Protected Area. There will be a "Protected Area" around your Franchised Business as stated 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. For example, in densely populated urban areas, the Protected Area may be smaller than a 1.5-mile radius. We may not alter your Protected Area without your consent, even if the population in your Protected Area increases.
Exclusive Territory. Your Protected Area will be an exclusive territory in which we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks within the Protected Area of your Franchised Business.
Not Exclusive for Marketing. Because marketing efforts are difficult to limit to a specific area (for example, radio and internet do not follow geographic boundaries), your territory is not exclusive for marketing.
Source: Item 12 — TERRITORY (FDD pages 40–44)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the specifics of the Protected Area are detailed in Schedule 1, Section 3 of the Franchise Agreement. The size and population demographics of each Protected Area can vary, but it is generally a 1.5-mile radius around the Franchised Business location. Deka Lash retains the right to modify the size of the Protected Area based on market conditions, and they will not alter the Protected Area without the franchisee's consent, even if the population increases.
Within the Protected Area, Deka Lash grants an exclusive territory, meaning neither company-owned nor franchised outlets selling similar goods or services under the same trademarks will be established. However, this exclusivity does not extend to marketing efforts, as marketing strategies like radio and internet advertising are difficult to confine geographically.
It is important to note that Deka Lash and its affiliates retain certain rights within the Protected Area, including the ability to sell approved products and services through alternative channels of distribution like the internet, acquire competing systems, develop other business systems under different names or marks, and engage in activities not expressly prohibited in the Franchise Agreement. Franchisees do not have rights to distribute products through these alternative channels or share in any proceeds from them.