An exclusive territory is a defined area where only one franchisee may operate, without competition from the franchisor or other franchisees. The franchisor agrees (i) not to award or operate any other unit within this boundary during the term of the Franchise Agreement, (ii) not to compete through alternative channels of distribution within this boundary during the term of the Franchise Agreement and (iii) operate competitive brands it controls within this boundary during the term of the Franchise Agreement.
The scope of rights are described in Item 12 of the Franchise Disclosure Document and set out in detail within the Franchise Agreement. Franchisors must make certain disclosures applicable to both exclusive territories and non-exclusive territories.
Exclusive territories offer the highest degree of franchisee protection. They:
prevent internal brand competition
provide a reliable market area
improve franchisee confidence
support long term unit growth and performance
Brands that promise exclusivity must define boundaries clearly to avoid disputes.
Exclusive territories are often used when:
customer travel patterns are local
services require predictable coverage
franchisees invest heavily in local marketing
markets need clear separation to remain profitable
Examples may include home services, fitness, education, wellness and retail concepts.
Franchise Territory
Protected Territory
Item 12
Market Penetration
Radius Map
Drive Time Map
Franchise Territory Mapping
Demographic Analysis
Reporting
Contact Mapping
Last updated: November 25, 2025
