What is the typical protective radius around a Deka Lash franchise location?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
There will be a "Protected Area" around your Franchised Business as defined 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.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, a franchisee is granted a protected area around their Franchised Business, as defined in Schedule 1, Section 3 of the Franchise Agreement. The document states that the area or population included in each Protected Area will vary, but the Protected Area is generally a 1.5-mile radius. However, Deka Lash retains 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.
It is important to note that the protected area is not exclusive for marketing purposes, as marketing efforts are difficult to limit to a specific geographic area. Franchisees' advertising must be primarily focused in their territory unless Deka Lash agrees otherwise in writing. All marketing and advertising, including through other channels of distribution such as the Internet, must be approved by Deka Lash in writing, for each occurrence, in advance. Franchisees may accept customers in their studio who come for services without regard to where they reside.
Furthermore, Deka Lash retains certain rights within the protected areas, including the right to sell approved products and services through alternative channels of distribution, acquire competing systems, and develop other business systems using different names or marks. The Franchise Agreement grants franchisees no rights to distribute products through alternative channels of distribution or to share in any proceeds received by any party selling through alternative channels. The Franchise Location and associated Protected Area will be defined in Section 2 and Section 3 of the Schedule 1 to the Franchise Agreement once the lease for the site is approved by Deka Lash, fully executed, and submitted to them, which will supersede any temporary protected radius.