The "territory" offered to you by a franchise company, which prevents the franchisor from establishing any other location within your designated area.
A designated area or geographic boundary granted to the franchisee by the terms of a franchise agreement. The franchisor agrees to not to open another franchised or company-owned business of a similar nature within the franchisee's protected territory. Also known as Protected Territory.
Where the franchised business is to be operated from a single location the franchisee may receive exclusivity solely to that site or to a market area usually a set distance surrounding the location. In a mobile service business the franchisee may be awarded a geographical territory large enough to ensure growth potential. A franchise system can be impaired by having too many franchisees in one market where there may not be enough business to support them, but on the other hand a cluster of units where they are not directly competing can take advantage of the synergy that is created by dominating the market, keeping out the competition and benefiting from joint marketing promotions.
Under the general agency distribution system, a territory in which no individual other than the general agent is permitted to offer the insurer's products. Compare to nonexclusive territory and overlapping territory.
As a franchisee you can, with the consent of the franchisor, be given an exclusive area around your operation. This area can be large or small and no other franchisee or company owned business would be allowed to operate there. !-- google_ad_client = "pub-6913928535959215"; google_alternate_color = "FFFFFF"; google_ad_width = 336; google_ad_height = 280; google_ad_format = "336x280_as"; google_ad_type = "text"; google_ad_channel =""; google_color_border = "FFFFFF"; google_color_bg = "FFFFFF"; google_color_link = "000000"; google_color_url = "666666"; google_color_text = "333333";
A specifically defined geographic area in which franchisees retain the sole right to operate. Federal Trade Commission (FTC): Federal agency regulating trade practices, commerce and franchises.
A franchisee may be granted exclusivity within an area. It should be noted, however, that such an arrangement could be seen as infringing competition legislation and the franchisorâ€(tm)s ability to enforce it, for example against other franchisees within the network, may be limited.