Under what condition does Deka Lash grant an exclusive territory to the franchisee?

According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash grants a franchise to operate a Deka Lash business using their system and marks within a protected area. This protected area is specifically described in Schedule 1 of the franchise agreement. The grant of the franchise and the protected area are subject to the terms of the franchise agreement itself.

This means that a franchisee, upon signing the franchise agreement, is given the right to operate a Deka Lash studio within a defined geographic area where, presumably, Deka Lash will not establish another franchised location. The specific boundaries and conditions of this protected area are detailed in Schedule 1 of the agreement, which is a crucial document for prospective franchisees to review carefully.

However, it is important to note that Deka Lash retains certain rights within the protected area. Deka Lash and its affiliates reserve the right to sell approved products and services through alternative channels of distribution, such as the internet, even within a franchisee's protected area. They can also acquire or be acquired by competing systems, even those with units inside a franchisee's protected area. Additionally, Deka Lash can develop other business systems using different names or marks, even if they distribute similar products or services.

Therefore, while Deka Lash grants a protected area, this exclusivity is limited. Franchisees should be aware that Deka Lash retains significant rights to operate and compete within that area through other channels and brands. Understanding the specifics outlined in Schedule 1 and the reserved rights is essential for assessing the true value and limitations of the protected area.