For how long after the Deka Lash agreement expires or terminates are franchisees prohibited from soliciting clients?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.2 No Solicitation of Customers.
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 the 2024 Deka Lash Franchise Disclosure Document, franchisees are restricted from soliciting clients for two years after the expiration or termination of their franchise agreement. Specifically, this non-solicitation clause prevents former franchisees from directly or indirectly soliciting the patronage of any client who was served by their Deka Lash franchise during the last 24 months of operation, or for the entire duration they were a franchisee if it was shorter than 24 months. This restriction applies within the franchisee's Protected Area or within thirty (30) miles of the boundaries of the Protected Area.
This provision is designed to protect Deka Lash's customer base and prevent former franchisees from leveraging their established relationships to unfairly compete with the brand. The restriction covers soliciting clients for the purpose of offering eyelash extension services for a fee or charge. This means a former franchisee cannot actively seek out or encourage existing clients to move their business to a competing establishment.
For a prospective Deka Lash franchisee, this clause highlights the importance of building a sustainable business within the Deka Lash system. While franchisees can develop strong client relationships, they must understand that these relationships are subject to certain restrictions if they leave the system. It is also important to note that the non-solicitation agreement extends beyond the Protected Area, reaching thirty miles beyond its boundaries, which could significantly limit business opportunities after leaving the franchise.
It is common in the franchise industry to have non-solicitation agreements to protect the brand's customer base. The specific terms, including the duration and geographic scope, can vary. Franchisees should carefully consider these restrictions and how they might impact their future business plans before entering into a franchise agreement. Understanding these limitations is crucial for making an informed decision about investing in a Deka Lash franchise.