Franchising
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.
Related Terms
Area Development Agreement
A contract granting a franchisee the right to open multiple units within a specified territory over a defined timeline, often with development milestones.
Encroachment
When a franchisor opens new locations or allows new franchisees to operate near existing franchisees, potentially cannibalizing their sales.