Under what condition will Deka Lash generally require development areas to be contiguous?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.2 Non-Contiguous Development Areas.
We generally require that development areas be contiguous.
If you are awarded a Development Area with non-contiguous sections, each non-contiguous section will be assigned a number of franchise locations to be opened and operating in the associated non-contiguous area.
Once you have executed the last lease for the required number of franchise locations required to be opened and operating in the specified non-contiguous area, your territorial protections associated with this non-contiguous Development Area will be terminated, and you will not have any rights or protections within the associated non-contiguous section of your Development Area other than the territorial rights granted in connection with any Franchised Businesses that you have opened and commenced operating within this non-contiguous Development Area.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash generally requires that development areas be contiguous. However, if a franchisee is awarded a Development Area with non-contiguous sections, each non-contiguous section will be assigned a number of franchise locations to be opened and operating in the associated non-contiguous area.
Once the franchisee has executed the last lease for the required number of franchise locations required to be opened and operating in the specified non-contiguous area, the territorial protections associated with this non-contiguous Development Area will be terminated. The franchisee will not have any rights or protections within the associated non-contiguous section of their Development Area other than the territorial rights granted in connection with any Franchised Businesses that they have opened and commenced operating within this non-contiguous Development Area.
This means that while Deka Lash prefers development areas to be connected, they may allow for non-contiguous areas under certain conditions. Franchisees need to be aware that territorial protections in non-contiguous areas are contingent upon meeting specific development milestones, and failure to do so can result in the loss of those protections. This policy could impact a franchisee's expansion strategy and potential revenue in those non-contiguous areas.