For how long after the expiration or termination of the Deka Lash agreement are franchisees restricted from offering eyelash extension services in the Protected Area?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- b) Post-Term.
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 or another Protected Area franchised by us and in operation at that time, directly or indirectly, for a fee or charge, offer or engage in eyelash extension services.
- 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, a franchisee is restricted from offering eyelash extension services for a period of two years after the expiration or termination of the Franchise Agreement. This restriction applies within the franchisee's Protected Area and extends to a 30-mile radius beyond the boundaries of the Protected Area, as well as within 30 miles of any other Deka Lash franchise in operation at that time.
This non-compete clause prevents former franchisees from directly competing with Deka Lash within a defined geographical area for a specified duration. The restriction is in place to protect Deka Lash's market share and brand reputation by preventing former franchisees from leveraging the knowledge and experience gained while operating under the Deka Lash brand to unfairly compete.
Additionally, the FDD states that franchisees are prohibited from soliciting the patronage of any client served by their former Deka Lash franchise during the last 24 months of operation, or for the entire duration they were a franchisee if it was less than 24 months. This restriction aims to prevent former franchisees from taking existing Deka Lash customers to a competing business, further safeguarding Deka Lash's client base.
These post-term covenants are standard practice in franchising to protect the franchisor's investment in its brand and franchise system. Prospective franchisees should carefully consider the implications of these restrictions, especially if they plan to remain in the same geographic area and continue offering similar services after leaving the Deka Lash system.