Where is the Protected Area around a Deka Lash Franchised Business defined?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
usiness to another site in the designated area, provided such a site is available. We will approve or disapprove the relocation of your outlet, typically within 14 business days of your submission of the required site selection documents required by us.
- 3.4 Protected Area/Exclusive Territory. There will be a "Protected Area" around your Franchised Business as defined in Schedule 1, Section 3. The area or population included in each Protected Area will vary. The Protected Area is generally a 1.5-mile radius. We reserve the right to vary the size of the Protected Area based on the demographics and development of each market. For example, in densely populated urban areas, the Protected Area may be smaller than a 1.5-mile radius. We may not alter your Protected Area without your consent, even if the population in your Protected Area increases.
- 3.5 Not Exclusive for Marketing. Because marketing efforts are difficult to limit to a specific area (for example, radio and internet do not follow geographic boundaries), your territory is not exclusive for marketing.
- 3.6 Advertising Limits. Your advertising must be primarily focused in your territory unless we agree otherwise in writing. All marketing and advertising, including through other channels of distribution such as the Internet, catalog sales, telemarketing, or other direct marketing must be approved by us, in writing, for each occurrence, in advance. You may accept customers in your studio who come for services without regard to where they reside.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the Protected Area for a franchised business is defined in Schedule 1, Section 3 of the Franchise Agreement. The document specifies that a franchisee will operate their business at a location approved by Deka Lash, as designated in Section 2 of Schedule 1 of the Franchise Agreement. This approval is based on Deka Lash's site selection criteria outlined in their Manual.
The Protected Area is generally a 1.5-mile radius around the franchised location, but Deka Lash retains the right to modify the size of this area based on the demographics and development of each market. This means that in densely populated urban areas, the Protected Area may be smaller than the standard 1.5-mile radius. However, Deka Lash states that they will not alter a franchisee's Protected Area without their consent, even if the population within that area increases.
It's important to note that while Deka Lash grants a Protected Area, this area is not exclusive for marketing purposes. The FDD acknowledges that marketing efforts, such as radio and internet advertising, are difficult to limit geographically. Franchisees are generally expected to focus their advertising within their territory, but all marketing and advertising materials, including online content, must be approved in writing by Deka Lash in advance. Franchisees are allowed to serve customers who come to their studio regardless of where they reside.