What is the meaning of 'Designated Search Area' in the Deka Lash Franchise Agreement?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
of $15,000 per month in a Territory or a minimum of 75 members in our membership program in a Territory, or we may terminate your Franchise Agreement.
Non-Exclusive Designated Search Area. Unless specified otherwise, we will provide you with a non-exclusive "Designated Search Area" as defined in Section 1 of Schedule 1 of your Franchise Agreement within which you must locate your Franchised Business.
Exclusive Designated Search Area. If your Designated Search Area contains exclusive rights, such as being part of an Area Development Agreement, we will not license anyone the right to open or operate a Franchised Business that is physically located within that Exclusive Designated Search Area. This does not mean you can open or operate a Franchised Business anywhere within that Exclusive Designated Search Area. If a franchisee secures a location near your Exclusive Designated Search Area, and their associated protective radius (generally 1.5 miles) overlaps into your Exclusive Designated Search Area, you will not be able to locate a studio within the protected radius that overlaps your Exclusive Designated Search Area.
Source: Item 12 — TERRITORY (FDD pages 40–44)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a 'Designated Search Area' is defined in Section 1 of Schedule 1 of the Franchise Agreement. Unless specified otherwise, Deka Lash provides franchisees with a non-exclusive Designated Search Area within which they must locate their Franchised Business.
If the Designated Search Area contains exclusive rights, such as being part of an Area Development Agreement, Deka Lash will not license anyone else to open or operate a Franchised Business physically located within that Exclusive Designated Search Area. However, this does not guarantee that a franchisee can open or operate a Franchised Business anywhere within that Exclusive Designated Search Area.
If another franchisee secures a location near the Exclusive Designated Search Area, and their protected radius (typically 1.5 miles) overlaps, the new franchisee will not be able to locate a studio within the overlapping protected radius. Deka Lash states that they will inform franchisees of any existing studios with protective radiuses overlapping into their Exclusive Designated Search Area before the agreement is executed. However, Deka Lash makes no guarantees that a franchisee will not later choose a location that creates a protective radius that overlaps into the Exclusive Designated Search Area.