Can a Deka Lash franchisee accept customers from outside their territory?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
Subject to the terms of this franchise agreement ("Agreement" or "Franchise Agreement"), we grant to you a Deka Lash franchise ("Franchised Business") using our system and our Marks in the protected area described in Schedule 1 ("Protected Area"). You agree to abide by the terms of this Agreement.
- 3.14 Our Rights in Protected Areas.
We and our affiliates also reserve the right to:
- a.
Sell approved products and services, using our principal trademarks or different trademarks, through all alternative channels of distribution as we deem appropriate, including, but not limited to, the internet, the right to run a website to advertise products and services, and sell products and services on that website under our Marks, without paying compensation to you for soliciting or accepting orders inside your territory.
- b.
Acquire, or be acquired by, any competing system or other third party, including a competing system that has one or more units located within your Protected Area and that may or may not then operate under our Marks and brand.
- c.
Develop and establish other business systems (including systems that distribute products or services similar to those offered at Deka Lash businesses) using other names or marks, and grant licenses to use those systems.
- 3.15 No Rights to Alternate Channels of Distribution. You understand that the Franchise Agreement grants you no rights: (i) to distribute such products through alternative channels of distribution (such as the Internet, catalog sales, telemarketing, or other direct marketing); or (ii) to share in any of the proceeds received by any party selling through alternative channels of distribution.
- 3.16 Acceptance & Reimbursement Policies. We reserve the right to establish policies and guidelines regarding the acceptance and reimbursement associated with gift certificates, gift cards, memberships, discounts, coupons, or promotions as set forth in our Manuals or otherwise in writing by us. For example, we reserve the right to establish policies relating to allocation of funds when a person buys a gift certificate in one studio, but it is redeemed in another studio.
- 3.17 All Other Rights Reserved. Except as provided in this Section 3 of this Agreement, the parties agree and acknowledge that the rights granted in this Agreement are non-exclusive and that we and our affiliates reserve all other rights not expressly granted to you herein.
- 6.6 Client Service. You shall interact with prospective and actual clients in a professional and respectful businesslike manner and diligently fulfill your obligations to them when they engage your services.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash grants franchisees a Protected Area. The franchise agreement grants the franchisee the right to operate a Deka Lash franchise using Deka Lash's system and marks within this Protected Area, as described in Schedule 1 of the agreement.
However, Deka Lash retains specific rights within the franchisee's Protected Area. Deka Lash can sell approved products and services through alternative channels of distribution, such as the internet, using their trademarks without compensating the franchisee for orders originating inside the franchisee's territory. Deka Lash also has the right to acquire or be acquired by competing systems, even those with units within a franchisee's Protected Area. Additionally, Deka Lash can develop other business systems, even those that offer similar products or services to Deka Lash, under different names or marks, and grant licenses to others to use those systems.
The Deka Lash franchise agreement does not grant franchisees the right to distribute products through alternative channels like the Internet or telemarketing, nor does it allow them to share in any proceeds from sales through these channels. Deka Lash also reserves the right to establish policies regarding the acceptance and reimbursement of gift certificates, memberships, discounts, coupons, or promotions, including policies for allocating funds when a gift certificate is purchased at one studio but redeemed at another. Deka Lash retains all rights not expressly granted to the franchisee in the agreement.
In summary, while Deka Lash franchisees are granted a Protected Area, Deka Lash retains significant rights to operate and sell within that area through alternative channels and other business systems. This means that while a franchisee may primarily focus on customers within their defined territory, Deka Lash can still engage with customers in that same area through other means. The FDD does not explicitly state whether a franchisee can accept customers from outside their territory, but it does imply that the franchisee is responsible for client service, interacting with prospective and actual clients in a professional manner and fulfilling obligations to them when they engage their services.