During the term of the Deka Lash agreement, in what geographic areas are franchisees prohibited from offering or engaging in eyelash extension services outside of the franchised business?

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 restriction applies to any eyelash extension services, ensuring that all such services are provided exclusively through the franchised business.

After the agreement expires or terminates, the franchisee faces further geographic restrictions. For a period of two years, they cannot offer or engage in eyelash extension services, for a fee or charge, 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. This post-term restriction is designed to prevent unfair competition with existing Deka Lash franchises.

These non-compete clauses are typical in franchising to protect the brand and other franchisees. Prospective Deka Lash franchisees should carefully consider these restrictions, as they will limit their ability to provide eyelash extension services outside of the franchised business both during the term of the agreement and for two years after its expiration or termination. Understanding the specific boundaries of the Protected Area, as defined in Schedule 1 of the Franchise Agreement, is crucial for assessing the impact of these restrictions.