What is the typical Protected Area radius for a Deka Lash franchise?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
There will be a "Protected Area" around your Franchised Business as stated in Schedule 1, Section 3. The area or population included in each Protected Area will vary. The Protected Area is generally a 1.5-mile radius. We reserve the right to vary the size of the Protected Area based on the demographics and development of each market. For example, in densely populated urban areas, the Protected Area may be smaller than a 1.5-mile radius. We may not alter your Protected Area without your consent, even if the population in your Protected Area increases.
Exclusive Territory. Your Protected Area will be an exclusive territory in which we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks within the Protected Area of your Franchised Business.
Not Exclusive for Marketing. Because marketing efforts are difficult to limit to a specific area (for example, radio and internet do not follow geographic boundaries), your territory is not exclusive for marketing.
Source: Item 12 — TERRITORY (FDD pages 40–44)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a franchisee typically receives a Protected Area around their Franchised Business, as detailed in Schedule 1, Section 3 of the Franchise Agreement. While the specific area or population within each Protected Area can vary, the general radius is 1.5 miles. However, Deka Lash retains the right to modify the size of the Protected Area based on the specific demographics and development of each market. For instance, in densely populated urban areas, the Protected Area may be smaller than the standard 1.5-mile radius.
It's important to note that Deka Lash will not alter a franchisee's Protected Area without their consent, even if the population within that area increases. This provides a level of assurance for franchisees regarding their exclusive territory. The Protected Area is exclusive, meaning Deka Lash will not establish another company-owned or franchised outlet selling similar goods or services under the same trademarks within the franchisee's Protected Area.
However, this exclusivity does not extend to marketing efforts, as Deka Lash acknowledges that marketing activities like radio and internet advertising are difficult to confine to specific geographic boundaries. Therefore, while a franchisee has an exclusive territory, they do not have exclusive marketing rights within that territory. This distinction is crucial for prospective franchisees to understand, as they may face marketing competition from Deka Lash or other franchisees even within their Protected Area.
Furthermore, Deka Lash retains certain rights within a franchisee's Protected Area, including the right to sell approved products and services through alternative channels of distribution like the internet, acquire or be acquired by competing systems, develop other business systems, and engage in other activities not expressly prohibited in the Franchise Agreement. These rights allow Deka Lash to adapt to changing market conditions and explore new business opportunities, but they also mean that a franchisee's Protected Area is not entirely free from competition or franchisor activity.