For how long after the termination of the Franchise Agreement is a Deka Lash franchisee restricted from offering competitive services?

According to Deka Lash's 2024 Franchise Disclosure Document, a franchisee is restricted from offering competitive services for two years after the termination of the Franchise Agreement. This restriction applies within the states and territories of the United States. However, a franchisee may offer competitive services if they receive prior written consent from Deka Lash.

This non-compete clause prevents former franchisees from directly competing with Deka Lash shortly after their franchise agreement ends. This is a common practice in franchising to protect the brand's market share and confidential information. The geographic scope of the restriction covers the entire United States, which is relatively broad.

A prospective franchisee should carefully consider the implications of this restriction. If they plan to remain in the beauty industry after their Deka Lash franchise, they would need to either avoid offering competitive services for two years or seek written consent from Deka Lash to do so. Obtaining this consent may not be guaranteed, so it's important to understand the potential limitations this clause places on future business endeavors.

It would be prudent for a potential franchisee to seek legal counsel to fully understand the enforceability and implications of this non-compete agreement in their specific state, as these clauses can vary in enforceability depending on local laws.