Within the Deka Lash franchise agreement, where is the Designated Search Area defined?

According to the 2024 Deka Lash Franchise Disclosure Document, the Designated Search Area is defined in Section 1 of Schedule 1 of the Franchise Agreement. Deka Lash typically provides franchisees with a non-exclusive Designated Search Area where they are required to locate their Franchised Business, unless specified otherwise.

However, if the Designated Search Area contains exclusive rights, such as being part of an Area Development Agreement, the franchisee cannot assume they can open or operate a Franchised Business anywhere within that Exclusive Designated Search Area. While Deka Lash will not license anyone else the right to open or operate a Franchised Business physically located within that Exclusive Designated Search Area, the franchisee's rights are limited.

Furthermore, if another franchisee secures a location near the Exclusive Designated Search Area, and their protective radius (generally 1.5 miles) overlaps into the franchisee's Exclusive Designated Search Area, the franchisee will not be able to locate a studio within the protected radius that overlaps their Exclusive Designated Search Area. Deka Lash will inform the franchisee of any existing studios with protective radii overlapping into their Exclusive Designated Search Area before the agreement is executed, but they do not guarantee that a franchisee will not subsequently choose a location that creates such an overlap.

It's important to note that Deka Lash will not define a Franchise Location or Protected Area until the franchisee has an executed lease. However, upon submission of a fully executed Letter of Intent (LOI) for a proposed location that Deka Lash has approved, they will create a temporary protected radius around the proposed location, preventing any other Franchised Business from being located there for up to 60 days to allow the franchisee to finalize the lease. Once the lease is approved, fully executed, and submitted, Deka Lash will define the Franchise Location and associated Protected Area in Section 2 and Section 3 of Schedule 1 to the Franchise Agreement, superseding the temporary protected radius.