For a Deka Lash franchise, when is the protected area radius defined in relation to the lease?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.10 Protected Area Temporary Protection. We will not define a Franchise Location or Protected Area until you have an executed lease.
However, upon the submission of a fully executed Letter of Intent ("LOI") to us for a proposed location for the Franchised Business that we have approved, we will create a temporary protected radius around said proposed location within which we will not locate any other Franchised Business.
We will grant this protected radius for a period of up to 60 days to allow you to negotiate and finalize a lease for the proposed location.
While you may have multiple 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.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the protected area for a franchise is defined after the lease is approved and executed. Specifically, Deka Lash will define the Franchise Location and Protected Area in Section 2 and Section 3 of Schedule 1 to the Franchise Agreement once the lease for the site is approved, fully executed, and submitted to them. This defined area then supersedes any temporary protected radius that may have been in place beforehand.
Prior to the finalization of the lease, Deka Lash may grant a temporary protected radius. Upon submission of a fully executed Letter of Intent (LOI) for a proposed location that Deka Lash has approved, they will create a temporary protected radius around that location, preventing the establishment of another Deka Lash franchise within that radius. This temporary protection lasts for up to 60 days to allow the franchisee to negotiate and finalize the lease. A franchisee may have multiple LOIs, but Deka Lash will only grant a protected radius around one designated location at a time.
This process ensures that a Deka Lash franchisee has a defined territory only when they have secured an approved location with a lease. The initial temporary protected radius provides a limited-time buffer during lease negotiations, while the final protected area definition in the Franchise Agreement provides clarity on the franchisee's exclusive operating area once the lease is in place. The standard lease term required by Deka Lash is a minimum of five years, with optional extension terms, providing a stable period for the franchisee to operate within their protected area.