A protected territory grants the franchisee certain market rights but allows the franchisor to retain limited freedoms, such as operating national accounts, online sales, non traditional venues or other reserved channels. Protection may be partial, conditional or tied to performance requirements.
Protected territory rights must be fully disclosed in Item 12 of the Franchise Disclosure Document.
Protected territories balance franchisee protection with franchisor flexibility. They:
define core market rights
allow franchisors to pursue national partnerships
support multi channel strategies
prevent unnecessary clustering
preserve consistent systemwide growth
Buyers review protected territory limitations carefully.
A franchisor may reserve the right to:
sell through e commerce
operate in airports, stadiums or captive venues
serve national accounts
operate company owned convenience formats
These rights must be clearly disclosed.
Exclusive Territory
Franchise Territory
Item 12
Radius Map
Franchise Territory Mapping
Demographic Analysis
Reporting
Point of Interest
Contact Mapping
Last updated: November 25, 2025
