Can a Deka Lash franchisee focus their advertising outside their territory if Deka Lash agrees?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
rotected 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. 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.
- d. Engage and license others to engage in any other activities not expressly prohibited in the Franchise Agreement.
- 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.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
Based on the 2024 Deka Lash Franchise Disclosure Document, the agreement grants franchisees a Protected Area, but it does not explicitly address whether a franchisee can focus their advertising efforts outside of this designated area with Deka Lash's approval. The document outlines Deka Lash's rights within the Protected Area, including selling products and services through alternative channels like the internet without compensating the franchisee for orders solicited or accepted within their territory. Deka Lash also retains the right to acquire competing systems, even those located within a franchisee's Protected Area.
Furthermore, Deka Lash reserves all rights not expressly granted to the franchisee, meaning that any activity not explicitly permitted in the Franchise Agreement is retained by Deka Lash. The agreement specifies that franchisees have no rights to distribute products through alternative channels or share in proceeds from sales through those channels.
Given the lack of explicit permission regarding advertising outside the Protected Area and the reservation of rights by Deka Lash, it is important for a prospective franchisee to seek clarification from Deka Lash on this matter. Specifically, they should inquire about the possibility of conducting advertising activities outside their Protected Area and under what conditions such activities would be allowed. This will help ensure a clear understanding of the franchisee's advertising rights and limitations.
Therefore, a potential franchisee should directly ask Deka Lash whether advertising outside of the Protected Area is permitted with their consent, and if so, what the specific guidelines and requirements are for such advertising activities.