What is a "Protected Franchise Territory"?
With regard to franchise agreements and the rights granted to franchisees, a "protected territory" is a designated geographic area whereby a franchisor agrees not to sell or grant additional franchises. The purpose of a protected territory is to provide a franchisee with exclusive rights to operate a franchise within the designated area. If you are considering the purchase of a franchise it is critical that you determine and negotiate a suitable protected territory.
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