Protected Marketing Areas
One of the key business issues in any franchise arrangement is the nature of the protected marketing area surrounding the franchised location. It should be balanced between protecting the franchisee’s reasonable market and providing the franchiser with the ability to maximize market penetration, over time. What happens to the Protected Marketing Area upon renewal should be addressed. We will discuss with you the difference between a “territory” and a “market” and how this distinction can be a trap for an unwary franchisee. We will help you analyze, negotiate and formulate these issues and see that this important aspect of the franchise agreement is fair and protective for both the franchiser and the franchisee.
Franchise Market vs. Franchise Territory from ReelLawyers on Vimeo.