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Do franchisors ever award more than one trading territory?
There is no common practice in relation to awarding more than one trading territory. Burger King, for instance, has let it be known that it is principally looking for franchisees who are able to open a significant number of outlets. Its arch competitor, McDonald’s, however, takes a much more cautious view and initially you are only entitled to take one outlet and have to prove your successful operation of that outlet before you are allowed to open another one. What is quite common, at least in those franchises which have relatively recently started, is to grant a franchisee a specified territory but to allow the franchisee to undertake work outside his territory until a franchisee for those adjoining territories is found. For those franchisors that do award additional trading territories to franchisees, it is important that each territory has a separate franchise agreement because it is quite possible for a franchisee to overextend himself and, as a result, concentrate his activities in only one of the territories that he has been granted.
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