Franchising
Encroachment
When a franchisor opens new locations or allows new franchisees to operate near existing franchisees, potentially cannibalizing their sales.
Related Terms
Territory Rights
Geographic exclusivity granted to franchisees, defining the area where they have protected rights to operate and preventing the franchisor from opening competing locations.
Trade Area
The geographic area from which a restaurant draws the majority of its customers, typically defined by drive time or distance radius.