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.
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 John Pratt
John Pratt Writes: In the UK, there are no legal restrictions on anyone becoming a franchisor, but... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: I’m often asked to define franchising and this is a good place to start... read more
Answered by Shelley Nadler
Shelley Nadler writes: The franchise agreement should cover a number of areas that will protect a franchisee. It... read more
Answered by Louise Harris
Louise Harris writes: Franchisors will usually have an outline avatar that may include age, skill set, past... read more
Exciting Franchise Opportunities
Companies to Consider
In excess of £70,000
Family Law Assistance
Monthly sales of up to £8,000 based on a 37.5-hour week
Yes, via third party
Profit of £50,000 and increasing thereafter
Not Just Travel
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 2 years ago | 2 min read
Added 2 days ago | 2 min read
Added 5 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news