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Exclusive Territory

What an Exclusive Territory Is

An exclusive territory is a defined geographic area where the franchisee has the sole right to operate. Within this territory, the franchisor agrees not to open or license other units of the same brand.

How Territories Are Defined

Territories may be defined by:

Miles or square kilometers
Population density
Zip codes or city limits
Service radius for mobile or service-based franchises

Benefits of an Exclusive Territory

Reduced competition from other franchisees
Predictable market potential
More control over marketing and customer base

Things to Check

Even with exclusivity, review your agreement to understand:

Conditions for expansion within your territory
Exceptions for online or delivery services
Franchisee obligations that affect territory use

Legal Disclaimer

This content is for general informational purposes only and does not constitute legal advice. Consult with a qualified attorney before signing any franchise agreement.

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