What is the geographic scope of the non-exclusive Designated Search Area provided by Deka Lash?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
3.8 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.
3.9 Exclusive Designated Search Area.
If your Designated Search Area contains exclusive rights, such as being part of an Area Development Agreement, while we will not license anyone the right to open or operate a Franchised Business that is physically located within that Exclusive Designated Search Area, this does not mean you can open or operate a Franchised Business anywhere within that Exclusive Designated Search Area.
If a franchisee secures a location near your Exclusive Designated Search Area, and their associated protective radius (generally 1.5 miles) overlaps into your Exclusive Designated Search Area, you will not be able to locate a studio within the protected radius that overlaps your Exclusive Designated Search Area.
We will let you know of any existing studios that have protective radius overlapping into your Exclusive Designated Search Area prior to execution of this agreement, but we make no warranties that a franchisee will not subsequently choose a location that creates a protective radius that overlaps into the Exclusive Designated Search Area.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees are provided with a non-exclusive Designated Search Area, as defined in Section 1 of Schedule 1 of the Franchise Agreement, within which they must locate their Franchised Business. This area is not exclusive, meaning Deka Lash can license other franchises in the same area.
If a franchisee has an Exclusive Designated Search Area, 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 area. However, this does not guarantee the franchisee can open or operate a Deka Lash studio anywhere within that Exclusive Designated Search Area. If another franchisee secures a location nearby and their 1.5-mile protective radius overlaps into the Exclusive Designated Search Area, the new franchisee will not be able to locate a studio within the overlapping protected radius.
Deka Lash will inform franchisees of any existing studios with protective radii overlapping into their Exclusive Designated Search Area before the agreement is executed. 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. This means that while a franchisee may have an initial understanding of their search area, future locations of other franchises could impact their ability to secure a location within their designated area.