What is the geographic scope of the Deka Lash non-solicitation clause after the agreement expires or terminates?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
You will not, for a period of two years after expiration or termination of this Agreement, in the Protected Area or within thirty (30) miles of the boundaries of the Protected Area, directly or indirectly solicit the patronage of any client served by your prior Franchised Business during the last 24 months that you were a franchisee, or such shorter time as you were a franchisee, for the purpose of offering such person or entity, for a fee or charge, eyelash extension services.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the non-solicitation clause extends to the Protected Area or within thirty (30) miles of the boundaries of the Protected Area. This restriction applies for a period of two years after the expiration or termination of the Franchise Agreement.
This means that after a Deka Lash franchise agreement ends, the franchisee is prohibited from actively seeking out clients who were served by their former Deka Lash business. This restriction is limited to the franchisee's Protected Area and the area within 30 miles of its boundaries. The non-solicitation clause specifically aims to prevent franchisees from leveraging their established customer base to start a competing business immediately after leaving the Deka Lash system.
The non-solicitation clause only restricts franchisees from actively soliciting former clients. It does not prevent them from serving former clients who seek them out independently. This distinction is important because it allows former franchisees to continue working in the eyelash extension industry without aggressively poaching Deka Lash's clientele.
It is important to note that the Protected Area size can vary based on the demographics and development of each market, as Deka Lash reserves the right to adjust the size of the Protected Area. The standard Protected Area is generally a 1.5-mile radius. Therefore, the geographic scope of the non-solicitation clause could differ from one franchise to another, depending on the specific Protected Area defined in their Franchise Agreement.