Does Deka Lash provide warranties that a franchisee will not subsequently choose a location that creates a protective radius that overlaps into the Development Area?

According to Deka Lash's 2024 Franchise Disclosure Document, if you enter into an Area Development Agreement, Deka Lash grants an exclusive territory where they will not locate another Deka Lash studio operating under similar marks within your Development Area, provided you comply with the agreement terms. However, this exclusivity has limitations regarding overlapping protective radii.

Specifically, while Deka Lash will not license another franchise to be physically located within your Development Area, the agreement does not guarantee that a franchisee outside your area won't choose a location whose 1.5-mile protective radius overlaps into your Development Area. In such cases, you would not be able to locate a studio within that overlapping protected radius. Deka Lash states they will inform you of any existing studios with protective radii overlapping into your Development Area before you sign the agreement.

Importantly, Deka Lash "make[s] no warranties that a franchisee will not subsequently choose a location that creates a protective radius that overlaps into the Development Area." This means that after you sign the agreement, a new Deka Lash franchisee could select a location that impacts your development area, and Deka Lash provides no assurance against this. This lack of warranty is a risk for area developers, as it could limit their ability to fully develop their territory due to the encroachment of neighboring protected areas. Prospective franchisees should consider this potential limitation and discuss location strategy thoroughly with Deka Lash before entering into an Area Development Agreement.