What is the radius of the protected area granted to a Deka Lash franchisee, measured from the studio location?
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.
- 3.7 Required Sales Volume. Aft
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a franchisee is generally granted a protected area with a 1.5-mile radius around their studio. However, the FDD specifies that this radius is not fixed. Deka Lash retains the right to modify the size of the protected area depending on the specific market's demographics and development. This means that in densely populated urban areas, the protected area might be smaller than 1.5 miles.
The document emphasizes that while a franchisee benefits from a protected area, this area is not exclusive for marketing purposes. Deka Lash clarifies that marketing efforts, especially those online or via radio, are hard to geographically restrict, so the protected area does not limit the company's or other franchisees' marketing activities. Franchisees are expected to focus their advertising primarily within their territory unless Deka Lash provides written consent otherwise.
Deka Lash also retains significant rights within the protected areas granted to franchisees. They can sell approved products and services through alternative channels of distribution, including the internet, without compensating the franchisee, even if the sales originate within the franchisee's protected area. Deka Lash can also acquire or be acquired by competing systems, even those with units inside a franchisee's protected area, and can develop other business systems using different names or marks, even if they offer similar products or services. These stipulations highlight that the protected area offers limited exclusivity, and Deka Lash retains considerable freedom to operate and expand its business as it sees fit.