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What is an Exclusive or Protected Territory when Buying a Franchise?

When buying a franchise an Exclusive or Protected Territory relates to the location where you will be establishing and operating your franchised business and the surrounding area or radius exclusive to your business. Rights respecting a franchisees or exclusive territory will be set forth in your franchise agreement and not every franchise grants franchisees an exclusive or protected territory.

Without an exclusive or protected territory a franchisor may grant additional franchises to be operated within a close proximity to your franchised business.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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