During the term of the Deka Lash agreement, where are franchisees prohibited from offering eyelash extension services outside of the franchised business?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
You will not, during the Term of this Agreement, in the United States, its Territories, and internationally, directly or indirectly offer or engage in eyelash extension services except in the provision of such services through the Franchised Business.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, during the term of the agreement, franchisees are restricted from offering or engaging in eyelash extension services, either directly or indirectly, outside of their franchised Deka Lash business within the United States, its Territories, and internationally. This means a franchisee cannot operate a competing eyelash extension business or provide these services independently, anywhere in the world, while the franchise agreement is active.
This restriction is in place to protect the Deka Lash brand and prevent franchisees from diverting business away from the franchised location. The non-compete clause ensures that the franchisee's efforts are focused solely on growing the Deka Lash business and upholding the brand's standards. This in-term non-compete is a standard practice in franchising, designed to maintain the integrity and consistency of the franchise system.
After the franchise agreement expires or is terminated, a different set of restrictions apply. The post-term non-compete restricts the franchisee from offering eyelash extension services within the Protected Area or within thirty (30) miles of the boundaries of the Protected Area or another Protected Area franchised by Deka Lash and in operation at that time, for a period of two years. This post-term restriction is more limited geographically than the in-term restriction.