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Can I negotiate the size of my trading territory?
Not all franchises grant a territory, whether exclusive or non-exclusive. For instance, many retail franchises do not contain any territory provisions, and in some consultancy franchises franchisees are allowed to trade anywhere in the UK.Assuming the franchisor grants a territory, almost certainly a franchisee will be limited to trading within that territory, subject to competition law restrictions on limiting a franchisee to a particular territory. Accordingly, a prospective franchisee needs to make sure the territory to be allocated to him is sufficiently large.The size of a territory will depend on the type of franchise being offered. For instance, if the franchise relates to domiciliary homecare, it should probably be calculated on the number of elderly and disabled people in that territory. Some franchises offer services to businesses, so in this case a territory should be calculated on the number of businesses in it, and so on.Franchisees should ensure that franchisors have calculated the territory to be allocated in a way that is commercially sensible. That is all that a prospective franchisee can do because, in practice, franchisors are extremely unlikely to negotiate the size of a territory if it has been carefully calculated using sensible commercial criteria.
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Exciting Franchise Opportunities
Companies to Consider
£120,000 net profit
Crayola® Imagine Arts Academy™
£22,000 - £25,000 per week
High street banks
£600,000 to £800,000
To be discussed
Yes, via high street banks
No Letting Go
Assists in securing third party funding
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