factual

What is the radius used to determine the protected area overlap for Deka Lash studios?

Deka_Lash Franchise · 2024 FDD

Answer from 2024 FDD Document

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.

Source: Item 23 — RECEIPT (FDD pages 63–234)

What This Means (2024 FDD)

According to the 2024 Deka Lash Franchise Disclosure Document, the protected area around a Deka Lash franchise is generally a 1.5-mile radius. However, Deka Lash retains the right to modify the size of the protected area based on the specific demographics and development of each market. This means that in densely populated urban areas, the protected area might be smaller than 1.5 miles.

For prospective franchisees, this has a few implications. First, the 1.5-mile radius is not a guarantee, and the actual protected area could be smaller depending on the location. Second, when searching for a location, franchisees need to be aware that if another Deka Lash secures a location nearby, the first to secure the location gets the protective rights of that radius area. This highlights the importance of speed in securing a location.

Furthermore, Deka Lash will inform franchisees of any existing studios with overlapping protective radii before the agreement is executed. However, Deka Lash does not guarantee that a new franchisee won't later choose a location that creates an overlap. This lack of guarantee underscores the need for franchisees to conduct thorough market research and due diligence before committing to a location. Franchisees should discuss with Deka Lash how they determine the protected radius size and what factors are considered for specific locations.

It's also important to note that Deka Lash does not grant rights of first refusal or similar rights to acquire additional franchises. This means that a franchisee cannot automatically expand their territory or prevent Deka Lash from opening another franchise nearby, outside of the protected area. This is a common practice in franchising, where franchisors retain the flexibility to grow their brand strategically.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.