What Are the Territory Rights Described in a Franchise Disclosure Document?

In a franchise disclosure document (FDD), Item 12 of the disclosures will provide a description of the franchisee's territorial rights. In Item 12, the franchisor must describe: 

• Any territory rights granted to the franchisee, including any exclusive territory within which the franchisor will not compete or franchise others;
• The franchisee's rights to relocate or acquire additional outlets or areas;
• Any development obligations or sales quotas the franchisee is required to meet; and
• Your competitive franchise program, and how conflicts between franchisees regarding territory, customers, or franchisor support will be resolved. 

Franchisors who do not grant exclusive territories must include the following mandatory warning in Item 12: 

"You will not receive an exclusive territory. You may face competition from other franchises, from outlets that we own, or from other channels of distribution or competitive brands that we control."

There are other disclosures required by Item 12 as well. To know exactly what you must disclose within your franchise disclosure document, you can get the professional advice of a New York franchise attorney. An experienced New York franchise attorney can also ensure that you provide all of the necessary disclosures and in a timely manner.

You can learn more about the requirements for a franchise disclosure document (FDD), by visiting our article library. 

How can a New York franchise attorney help?

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.