What is the protective radius generally associated with a Deka Lash franchise location?

According to Deka Lash's 2024 Franchise Disclosure Document, a franchisee typically receives a protected area around their franchised business, as defined in Schedule 1, Section 3 of the Franchise Agreement. This protected area is generally a 1.5-mile radius around the Deka Lash studio. However, Deka Lash retains the right to modify the size of the protected area based on the specific demographics and market conditions of each location. This means that while a 1.5-mile radius is the standard, it is not guaranteed and can change.

This protected area is not defined until the franchisee has an executed lease. However, upon submission of a fully executed Letter of Intent (LOI) for an approved location, Deka Lash will create a temporary protected radius around the proposed location, preventing the establishment of another Deka Lash franchise within that radius. This temporary protection lasts for up to 60 days to allow the franchisee to finalize the lease. Once the lease is approved, fully executed, and submitted, the Franchise Location and associated Protected Area will be defined in Schedule 1, superseding the temporary protected radius.

It's important to note that if another franchisee secures a location near a franchisee's Exclusive Designated Search Area or Development Area, and their 1.5-mile protective radius overlaps, the franchisee will not be able to locate a studio within the overlapping area. Deka Lash will inform franchisees of any existing studios with protective radii that overlap into their Exclusive Designated Search Area or Development Area before the agreement is executed, but they do not guarantee that a franchisee will not later choose a location that causes such an overlap. In cases where multiple franchisees have similar search areas, the first to secure a location and establish a protective radius gets the rights to that area, requiring others to adjust their search accordingly.

While Deka Lash grants a protected area, they also reserve certain rights within that area. Deka Lash and its affiliates can sell approved products and services through alternative channels of distribution, such as the internet, without compensating the franchisee for orders solicited or accepted within their territory. They can also acquire or be acquired by competing systems, even those with units within the franchisee's protected area. Additionally, Deka Lash can develop other business systems, even those offering similar products or services, under different names or marks, and grant licenses to others to use those systems. These stipulations highlight that the protected area is not an exclusive territory in the truest sense, as Deka Lash retains significant control and rights within it.