Are there non-competition covenants during the term of the Deka Lash franchise, as outlined in the Area Development Agreement?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise Agreement | Summary | |
|---|---|---|---|
| q. Non-competition covenants during the term of the franchise | 12 | No competition allowed in the United States and its territories (subject to applicable state law). | |
| Section in | |||
| ---- | ------------------------------------------------------------------------ | ------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Provision | Developme nt Agreement | Summary | |
| q. | Non-competition covenants during the term of the franchise | Not Applicable | Please see non-competition |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the table in Item 17 addresses non-competition covenants during the term of the franchise, but it refers to the Franchise Agreement, not the Area Development Agreement. The summary states, "No competition allowed in the United States and its territories (subject to applicable state law)." This means that as a Deka Lash franchisee, you are prohibited from engaging in any competitive business within the United States and its territories during the term of your Franchise Agreement, subject to state law.
However, the table regarding the Area Development Agreement in Item 17 states, "Please see non-competition." This indicates that the details of non-competition covenants related to the Area Development Agreement are not fully outlined in this section.
A prospective franchisee should carefully review the specific language in both the Franchise Agreement and the Area Development Agreement, and consult with a legal professional to fully understand the scope and implications of these non-competition clauses, as they may vary based on state law.