Where are the Franchise Location and associated Protected Area defined in the Deka Lash Franchise Agreement?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
fully executed LOI's, we will only grant a protected radius around one of the proposed locations you designate. This designation shall be made to us in writing, accompanied by the associated signed LOI, and we have up to 5 business days to accept such designation.
- 3.11 Protective Area Defined. Once the lease for the site is approved by us, fully executed, and submitted to us, we will then define the Franchise Location and associated Protected Area in Section 2 and Section 3 of the Schedule 1 to the Franchise Agreement, which will supersede the temporary protected radius noted above.
- 3.12 Lease Length. You must sign a lease for a minimum of five (5) years with optional extension terms.
- 3.13 Options, Rights of First Refusal. We do not grant rights of first refusal or similar rights to acquire additional franchises.
- 3.14 Our Rights in Protected Areas. We and our affiliates also reserve the right to:
- a.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the Franchise Location and associated Protected Area are defined in Section 2 and Section 3 of Schedule 1 to the Franchise Agreement. These definitions supersede any temporary protected radius that may have been in place beforehand.
The Franchise Location is the specific site that Deka Lash approves for the franchisee to operate their Deka Lash studio. The franchisee must operate the business only from this approved site and cannot relocate without Deka Lash's approval. Deka Lash approval is based on site selection criteria outlined in their Manual.
The Protected Area is the geographic area around the Franchised Business within which the franchisee may receive some territorial protection. The FDD states that the Protected Area is generally a 1.5-mile radius, but Deka Lash reserves the right to vary the size of the Protected Area based on the demographics and development of each market. It is important to note that the franchisee's rights within the Protected Area are subject to certain exceptions and reservations by Deka Lash, such as the right to sell products and services through alternative channels of distribution.
Prospective franchisees should carefully review Schedule 1 and related sections of the Franchise Agreement to fully understand the specific boundaries of their Protected Area and any limitations on their territorial rights. They should also inquire about the criteria Deka Lash uses to determine the size and shape of Protected Areas in different markets.