What triggers the definition of the Franchise Location and Protected Area in the Deka Lash Franchise Agreement?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.10 Protected Area Temporary Protection. We will not define a Franchise Location or Protected Area until you have an executed lease.
However, upon the submission of a fully executed Letter of Intent ("LOI") to us for a proposed location for the Franchised Business that we have approved, we will create a temporary protected radius around said proposed location within which we will not locate any other Franchised Business.
We will grant this protected radius for a period of up to 60 days to allow you to negotiate and finalize a lease for the proposed location.
While you may have multiple fully executed LOI's, we will only grant a protected radius around one of the proposed locations you designate.
This designation shall be made to us in writing, accompanied by the associated signed LOI, and we have up to 5 business days to accept such designation.
- 3.11 Protective Area Defined. Once the lease for the site is approved by us, fully executed, and submitted to us, we will then define the Franchise Location and associated Protected Area in Section 2 and Section 3 of the Schedule 1 to the Franchise Agreement, which will supersede the temporary protected radius noted above.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the Franchise Location and Protected Area are defined after specific conditions are met. Initially, upon submission of a fully executed Letter of Intent (LOI) for a proposed location that Deka Lash approves, a temporary protected radius is created. This temporary protection lasts for up to 60 days to allow the franchisee to finalize the lease agreement. However, this is only a temporary measure.
The definitive Franchise Location and Protected Area are formally established once the lease for the chosen site is approved by Deka Lash, fully executed by the franchisee, and submitted to Deka Lash. At this point, the details are outlined in Section 2 and Section 3 of Schedule 1 to the Franchise Agreement. This formal definition supersedes any temporary protected radius that was previously in place during the lease negotiation period.
This process ensures that Deka Lash franchisees have a defined territory in which to operate, but it also highlights the importance of securing and finalizing a lease agreement promptly. The initial temporary protection provides a buffer during negotiations, but the permanent territory is only established upon completion and approval of the lease. This is a fairly standard practice in franchising, as the location is critical to the success of the business, and the franchisor needs to ensure it meets their criteria before granting exclusive rights to that area.