What is Deka Lash's general requirement regarding the contiguity of development areas?

According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash generally requires that development areas be contiguous. However, Deka Lash may award a Development Area with non-contiguous sections. If this occurs, each non-contiguous section will be assigned a number of franchise locations to be opened and operating in the associated non-contiguous area.

Once the franchisee has executed the last lease for the required number of franchise locations required to be opened and operating in the specified non-contiguous area, the territorial protections associated with this non-contiguous Development Area will be terminated. The franchisee will not have any rights or protections within the associated non-contiguous section of their Development Area other than the territorial rights granted in connection with any Franchised Businesses that they have opened and commenced operating within this non-contiguous Development Area.

This policy has important implications for potential Deka Lash franchisees considering multi-unit development. While Deka Lash prefers contiguous development areas, non-contiguous areas are possible. Franchisees need to understand that territorial protections in non-contiguous areas are contingent on meeting development schedules and securing leases. Failure to meet these requirements could result in the loss of territorial rights within that specific non-contiguous section, even if the franchisee continues to operate existing locations within that area. This differs from a standard exclusive territory, where the franchisee typically maintains territorial rights as long as they remain in compliance with the franchise agreement.