Franchise Glossary
Protected Territory
A designated area where the franchisor agrees to limit, but not necessarily prohibit, the placement of additional units.
A protected territory offers some level of geographic security, but it is weaker than an exclusive territory. The franchisor may reserve the right to sell through certain channels (online, wholesale, non-traditional venues) or to establish units under different brands within the protected area. The exact protections and reservations are detailed in Item 12 of the FDD and the franchise agreement. Understanding the difference between "exclusive" and "protected" territory is crucial.
Related Terms