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Can I purchase more than one franchise territory?
For those franchises where territories are granted, your franchise will be for a specific territory. It is, of course, possible to acquire more than one territory if the franchisor is prepared to allow you to do this.
Some franchisors are keen to allow franchisees to develop multiple territories, but they will generally only do this once a franchisee has established that they have made a success with their first territory. In other words, franchisors often offer an option to take on additional territories subject to satisfactory performance in the territory currently being operated.
While multi-territory franchises are a growing trend, a number of franchisors have experienced difficulties with this approach. They have found that a franchisee who is very successful with his first franchise, in which he was actively involved in a management role, struggled when taking additional franchises because they could not devote enough time to the extra territories.
Franchisees who take multiple territories do need to be aware that it is likely that the franchisor would be able to terminate all franchise territories if there is a breach in one.
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