General questions about franchising
In this section, experts answer general questions most commonly asked which go beyond the specific subject areas listed above.
How do exclusive franchise territories work?
Exclusive territories require a commitment from both parties. On the one hand, the franchisor must undertake to respect the exclusivity of the franchisee, by not exercising his business himself and preventing third parties from opening outlets in the exclusive territory in question.
On the other hand, the franchisee must undertake not to actively attract clients from outside the said exclusive territory, thus avoiding interference in territories belonging to other franchisees.