A protected territory is a defined geographic area in which a franchisee is given the exclusive right to operate, and no other franchisee or corporate location will be allowed to open within that territory. The goal is to minimize internal competition and help franchisees build a customer base without worrying about another franchise unit undercutting them. The exact size and nature of the protected territory can vary depending on the franchise system and are usually outlined in the franchise agreement.
Protected Territory
This term
A protected territory guarantees that no other franchise units will open within a specific geographic area.
Joe Bailey
Lead Franchise Advisor & Owner
At Franchise Reports, the goal is simple: help you find better franchises.
