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the term protected territory
refers to your rights as a franchisee and really the geographic territory
you'll be granted to operate your franchise business protected territories also called
protected areas they're very important because
that represents an obligation and commitment by the franchisor
to designate an area that's exclusively yours
where you're going to operate the franchise business and it prohibits the franchisor
depending on the terms of the agreement from allowing
other individuals from buying a franchise and competing
against you but it's not very clear all the time
and protected territories vary from franchise agreement to franchise
agreement and they have certain exemptions and carve-outs
so you may be granted a protected territory
but it may not include competing operations in the mall
located within that territory or university located in that territory
or internet sales or sales through
other channels of distribution so when evaluating your rights as a franchisee
you need to understand you're protected territory
and you need to work with your franchise lawyer to fully understand
what rights your granted in the territory and what carve-outs permit
competition that you may or may not be expecting