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
![Author: Vincent Anthony Author: Vincent Anthony](/images/made/15a98ba108c60ca5852ed10cddec73bd16bc798c.jpg)
Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more
![Author: Louise Harris Author: Louise Harris](/images/made/81463d158e3d961e27c0ebcdf232b7072d2f3fdf.jpg)
Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more
![Author: Shelley Nadler Author: Shelley Nadler](/images/made/30ede99be89f361526162856856bd0d4018f3a4b.jpg)
Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more
![Author: Alan Wilkinson Author: Alan Wilkinson](/images/made/65741c6bb70d1e745499072da5482c43f7dea846.jpg)
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
![Amigos Burgers and Shakes logo](/images/made/images/uploads/companies/Amigos_LOGO_75_75_s.jpg)
Start your own Amigos Burgers and Shakes franchise
Yes
Find Out More£480,000 - £1m (from 14% profit)
![Amigos Burgers and Shakes logo](/images/made/images/uploads/companies/Amigos_LOGO_75_75.jpg)
Request Free Information
Send a free enquiry to Amigos Burgers and Shakes for further information!
![Business Partnership logo](/images/made/images/uploads/companies/Business_Partnership_new_logo_75_75_s.jpg)
Start your own Business Partnership franchise
Yes
Find Out MoreN/A
![Business Partnership logo](/images/made/images/uploads/companies/Business_Partnership_new_logo_75_75.jpg)
Request Free Information
Send a free enquiry to Business Partnership for further information!
![Walfinch logo](/images/made/images/uploads/companies/Walfinch-Logo-square-tealbackground-large_(2)_75_75_s.jpg)
Start your own Walfinch franchise
Yes
Find Out More£585,077
![Walfinch logo](/images/made/images/uploads/companies/Walfinch-Logo-square-tealbackground-large_(2)_75_75.jpg)
Request Free Information
Send a free enquiry to Walfinch for further information!
![Canopy Children’s Nurseries logo](/images/made/images/uploads/companies/Canopy_Childrens_Nurseries,_Comnined,_Deep_Navy_65_75_s.png)
Start your own Canopy Children’s Nurseries franchise
Yes
Find Out More£100,000+
![Canopy Children’s Nurseries logo](/images/made/images/uploads/companies/Canopy_Childrens_Nurseries,_Comnined,_Deep_Navy_65_75.png)
Request Free Information
Send a free enquiry to Canopy Children’s Nurseries for further information!
![ActionCOACH UK logo](/images/made/images/uploads/companies/ActionCOACH_LOGO_STACKED_RGB_2019_75_46_s.png)
Start your own ActionCOACH UK franchise
Yes
Find Out MoreThis would be discussed at interview...
![ActionCOACH UK logo](/images/made/images/uploads/companies/ActionCOACH_LOGO_STACKED_RGB_2019_75_46.png)
Request Free Information
Send a free enquiry to ActionCOACH UK for further information!
Companies to Consider
![Newsletter Signup](https://cdn.what-franchise.com/assets/images/misc/sidebar-newletter.jpg)
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
Why business coaching is a springboard to franchising success
Added 2 days ago | 2 min read
-
How to run a successful dessert restaurant
Added 4 days ago | 2 min read
-
Extra Help targets further expansion
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 -
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