Under what circumstances might the Protected Area for a Deka Lash franchise be smaller than a 1.5-mile radius?
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.
Source: Item 12 — TERRITORY (FDD pages 40–44)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the standard Protected Area for a franchise is generally a 1.5-mile radius. However, Deka Lash retains the right to modify this size based on specific market conditions.
Specifically, in densely populated urban areas, Deka Lash may determine that a Protected Area smaller than the standard 1.5-mile radius is appropriate. This adjustment accounts for the higher concentration of potential customers and the increased business activity typically found in urban settings.
It's important to note that Deka Lash cannot unilaterally alter a franchisee's Protected Area once it's established without the franchisee's consent, even if the population within that area increases. This provision offers some security to franchisees, ensuring their territory isn't reduced due to population growth. Prospective franchisees should carefully consider the demographics of their proposed location and discuss the potential size of their Protected Area with Deka Lash during the due diligence process.