Does Deka Lash have the right to engage in activities not expressly prohibited in the Franchise Agreement?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
d. Engage and license others to engage in any other activities not expressly prohibited in the Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 40–44)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash retains specific rights within a franchisee's protected area. Deka Lash maintains the right to engage and license others to engage in activities not expressly prohibited in the Franchise Agreement.
Additionally, Deka Lash and its affiliates reserve the right to sell approved products and services through alternative channels of distribution, including the internet, using their principal trademarks or different trademarks, without compensating the franchisee for orders solicited or accepted within their territory. They can also acquire or be acquired by competing systems or other third parties, even those with units in the franchisee's protected area, and develop other business systems, including those that distribute similar products or services under different names or marks.
This means that while a Deka Lash franchisee has a protected area, Deka Lash retains considerable freedom to operate and expand its brand through various channels, even within that protected area. A potential franchisee should consider how these retained rights might impact their business and revenue potential.