factual

What is the typical protective radius around a Deka Lash studio?

Deka_Lash Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 3.4 Protected Area/Exclusive Territory. 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.

Source: Item 23 — RECEIPT (FDD pages 63–234)

What This Means (2024 FDD)

According to the 2024 Deka Lash Franchise Disclosure Document, a franchisee will have a protected area around their Franchised Business, as defined in Schedule 1, Section 3 of the agreement. This protected area is typically a 1.5-mile radius around the studio. However, Deka Lash retains the right to modify the size of the protected area based on the specific demographics and market development of each location.

This means that while a new Deka Lash franchisee can generally expect a 1.5-mile radius around their studio where the franchisor will not establish another competing franchise, this is not guaranteed. The actual size of the protected area can vary depending on factors such as population density and local market conditions. This flexibility allows Deka Lash to optimize market coverage and potentially maximize the success of each franchise location.

It is important for prospective franchisees to carefully review Schedule 1, Section 3 of the Franchise Agreement to understand the specific protected area granted for their location. Franchisees should also inquire about the factors Deka Lash considers when determining the size of a protected area to fully understand the potential for nearby competition. Furthermore, a franchisee securing a location near another franchisee's Exclusive Designated Search Area will not be able to locate a studio within the protected radius that overlaps the existing franchisee's area.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.