factual

For a Deka Lash franchise, what is the radius of the protected area around the studio location?

Deka_Lash Franchise · 2024 FDD

Answer from 2024 FDD Document

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.

  • 3.5 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.

  • 3.6 Advertising Limits.

Your advertising must be primarily focused in your territory unless we agree otherwise in writing.

All marketing and advertising, including through other channels of distribution such as the Internet, catalog sales, telemarketing, or other direct marketing must be approved by us, in writing, for each occurrence, in advance.

You may accept customers in your studio who come for services without regard to where they reside.

Source: Item 23 — RECEIPT (FDD pages 63–234)

What This Means (2024 FDD)

According to the 2024 Deka Lash Franchise Disclosure Document, a franchisee is typically granted a protected area around their Franchised Business. This protected area is generally defined as a 1.5-mile radius. However, Deka Lash retains the right to modify the size of this protected area based on the specific demographics and market conditions of each location. For instance, in densely populated urban areas, the protected area may be smaller than the standard 1.5-mile radius.

It's important to note that while Deka Lash grants a protected area, this area is not exclusive for marketing purposes. The document clarifies that marketing efforts, such as radio and internet advertising, are difficult to limit geographically, so other franchisees or Deka Lash itself can market within your protected area. Franchisees are generally expected to focus their advertising efforts within their territory unless Deka Lash provides written consent to do otherwise.

Prior to the execution of the franchise agreement, Deka Lash will inform the franchisee of any existing studios whose protective radius overlaps into the franchisee's Exclusive Designated Search Area. However, Deka Lash does not guarantee that a franchisee will not subsequently choose a location that creates a protective radius that overlaps into the Exclusive Designated Search Area. The specific details of the protected area, including its exact dimensions, are defined in Schedule 1 of the Franchise Agreement once the lease for the site is approved and executed.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.