What is the Deka Lash franchisee's obligation regarding the location of the Franchised Business?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
y us. You are responsible for all costs you or your employees incur to attend such training, including training fees, travel, lodging, meals, and wages.
ITEM 12 TERRITORY
Location for Franchise Premises. You will operate your Franchised Business at the Franchise Location that we have approved as designated in Section 2 of the Schedule 1 to the Franchise Agreement. We base approval on our site selection criteria in our Manual. You must operate the Franchised Business only from the site we approve.
Permitted Uses. You may operate the Franchised Business only at the accepted site and may not relocate without our approval. You must sell approved products and provide approved services only at the Deka Lash studio you operate under a Franchise Agreement with us.
Relocation of the Franchised Business. We will not normally approve the relocation of the Franchised Business unless there is a material change in economic or other factors affecting your outlet. We will not normally allow you to open additional outlets within your Protected Area. If you lose possession of the Location through no fault of your own, or if we give our approval, you may apply to us for our approval to relocate your business to another site in the designated area, provided such a site is available. We will approve or disapprove the relocation of your outlet, typically within 14 business days of your submission of the required site selection documents required by us.
Protected Area. There will be a "Protected Area" around your Franchised Business as stated in Schedule 1, Section 3. 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.
Exclusive Territory. Your Protected Area will be an exclusive territory in which we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks within the Protected Area of your Franchised Business.
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.
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, social media, 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.
Required Sales Volume. After two years from the Effective Date of your Franchise Agreement you are required to have minimum Gross Revenue of $15,000 per month in a Territory or a minimum of 75 members in our membership program in a Territory, or we may terminate your Franchise Agreement.
Non-Exclusive Designated Search Area. Unless specified otherwise, we will provide you with a non-exclusive "Designated Search Area" as defined in Section 1 of Schedule 1 of your Franchise Agreement within which you must locate your Franchised Business.
Source: Item 12 — TERRITORY (FDD pages 40–44)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees must operate their Franchised Business at a location that Deka Lash approves, as designated in Section 2 of Schedule 1 of the Franchise Agreement. Deka Lash bases its approval on site selection criteria found in their Manual. Franchisees are only allowed to operate the Deka Lash studio from the approved site.
Franchisees may only conduct business at the approved location and cannot move without Deka Lash's permission. Deka Lash will typically only approve a relocation if there is a significant change in economic or other factors affecting the outlet. If a franchisee loses possession of the location through no fault of their own, or if Deka Lash approves, the franchisee can apply to relocate to another site in the designated area, provided such a site is available. Deka Lash will usually approve or disapprove the relocation within 14 business days of receiving the required site selection documents.
Deka Lash also provides a non-exclusive "Designated Search Area" within which franchisees must locate their Franchised Business, as defined in Section 1 of Schedule 1 of the Franchise Agreement, unless specified otherwise. If the Designated Search Area contains exclusive rights, such as being part of an Area Development Agreement, Deka Lash will not license anyone else to open or operate a Franchised Business physically located within that Exclusive Designated Search Area. However, this does not guarantee that a franchisee can open or operate a Franchised Business anywhere within that Exclusive Designated Search Area, as another franchisee's protected radius (generally 1.5 miles) could overlap into that area.
Prior to executing the agreement, Deka Lash will inform franchisees of any existing studios with protective radiuses overlapping into their Exclusive Designated Search Area. However, Deka Lash does not guarantee that a franchisee will not later choose a location that creates a protective radius that overlaps into the Exclusive Designated Search Area. To provide temporary protection while a franchisee secures a lease, Deka Lash will create a temporary protected radius around a proposed location for up to 60 days upon submission of a fully executed Letter of Intent (LOI) that Deka Lash has approved.