The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Close
What’s the difference between an exclusive and a protected territory?
Shelley Nadler writes:
The terms ‘exclusive territory’ and ‘protected territory’ are often confused. They can sometimes be used interchangeably by franchisors, but in franchising they usually have different meanings.
If your franchise territory is truly exclusive, your business will be protected from competition from the franchisor and other franchisees operating in your territory. If the territory you’re granted is described as ‘protected’, a franchisor agrees with a franchisee that it will not appoint an additional franchisee in that franchisee’s territory. However, the franchisor can operate the franchise business in your territory.
Many franchise systems grant their franchisees an exclusive or protected territory. This could be based on a radius from the premises, postcodes or a city or town. Even if a franchisee is granted an exclusive territory, this could be a small area, so it’s important to find out the size of the territory that’s being granted and to investigate if it offers enough protection for you to successfully operate a franchise business.
There should be a grant clause in the franchise agreement that will set out the rights you have been granted by the franchisor. The nature and extent of the exclusivity you are granted in the franchise agreement needs careful consideration by a British Franchise Association affiliate solicitor.
Shelley Nadler is a legal director in Bird & Bird’s international franchising team and has many years’ experience of advising on all aspects of franchising.
You might also be interested in

Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more

Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more

Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more

Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities

Start your own Lumi SKN Clinics franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Lumi SKN Clinics for further information!

Start your own Yolé franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Yolé for further information!

Start your own Flash Global franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Flash Global for further information!

Start your own Gourmet Sushi franchise
Yes
Find Out More£1,900,000

Request Free Information
Send a free enquiry to Gourmet Sushi for further information!
_75_75_s.jpg)
Start your own Certax Accounting franchise
Yes
Find Out More£92,000
_75_75.jpg)
Request Free Information
Send a free enquiry to Certax Accounting for further information!
Companies to Consider

Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
50 franchise brands with training programmes in 2025
Added one month ago | 2 min read
-
How the Renters’ Reform Bill is creating opportunities for property professionals
Added one week ago | 2 min read
-
How to get Brits making and sticking to new year business goals
Added one week ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Under 50k
If you have experience and more to invest
Click here -
Over 50k
If budget is not an issue, then don't miss these
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
What Franchise Newsletter
Keep up to date with all the industry news