What is the geographic scope of the restriction on soliciting customers of the Deka Lash franchised business after the agreement expires or terminates?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- j) Adhere to the provisions of the post-term covenants not to compete and not to solicit;
- k) Abide by any other covenant in this Agreement that requires performance by you after you are no longer a franchisee; and
- I) Execute, from time to time, any necessary papers, documents, and assurances to effectuate the intent of this Section 11.
12. NON-COMPETE AND NO SOLICITATION.
12.1 Non-Compete.
- a) In-Term.
You will not, during the Term of this Agreement, in the United States, its Territories, and internationally, directly or indirectly offer or engage in eyelash extension services except in the provision of such services through the Franchised Business.
- b) Post-Term.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the geographic scope of the non-solicitation covenant after the termination or expiration of the franchise agreement is not explicitly defined within the provided excerpts. However, the document does state that franchisees must adhere to the provisions of the post-term covenants not to compete and not to solicit.
While the excerpts do not specify the geographic boundaries of the non-solicitation agreement, they do mention that during the term of the agreement, franchisees are restricted from offering or engaging in eyelash extension services, except through the franchised business, within the United States, its Territories, and internationally. This suggests that the non-solicitation clause could potentially extend to a similar geographic scope after the agreement terminates.
To fully understand the geographic limitations of the post-term non-solicitation covenant, a prospective Deka Lash franchisee should carefully review the complete franchise agreement and consult with a legal professional. It is important to clarify whether the non-solicitation clause applies only within a specific radius of the former franchise location, within the Development Area, or across a broader region such as the United States or internationally. Understanding these restrictions is crucial for franchisees planning future business ventures after leaving the Deka Lash system.