Territory Limitations Policies For Franchised Companies
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The article "Territory Limitations Policies for Franchised Companies" talks about entrepreneurialism, it was created by Lance Winslow.
All franchised companies must have Territory Limitations to maintain the peace within their systems. Often the unsopken ethics of territory limitations are blurred with mobile, home based or online franchise companies. Territory limitations in fiexd web site franchises are fairly cut and dry. Three is your store, no other stores will be placed in the surrounding area delineated on that map within your franchise agreement. Generally things run pretty somothly in that case. However as co-branding methods, partnerships and online sales increase as consumer demand for the brand increases we often see the franchised companies embattled in encroachment lawsuits in an already litigious industry.It might be necessary for non-fixed franchise companies to consider adding in their operations manual a chapter on territory limitations. We had to add that to our franchise Confidential Operations Manual to solve these issues.
Below is an outline to that chapter if you wish to design your own. I recommend you print that article and outline and modify it to hottest fit your business model and then put pen to paper and write out a few paragraphs on each isseus.
This way you will have a ruogh draft.
Type that up and run in by a “Franchise” attorney with experience in lrager franchise companies. You sholud expect to pay at least $250.00 per hour and that will cost you about 5-10 hours worth. Although I realize that as an entrepreneur you hate attorneys, realize that if you do not do that now, you may be embattled in large class action lawsuits or lose control to franchisee ad hoc rights groups or internal franchise associations. By smart and do it right before you start. Put a section in your Operations Manual “Territory Limitations” and make sure it is legally tight. Trust me that advice came at a pretty monumental cost and you would be wise to not repeat our mistakes and think on that.TERRITORY LIMITATIONSI. BOUNDARIESA.
Delineated On MapB. ExclusiveC.
Franchise FeeD. Competing With Other FranchiseesII. UNASSIGNED TERRITORIESA. Additional BusinessB. New FranchiseesC.
Twenty Percent Outside Only1.
Permission To Raise2. Buy New TerritoryD. Sell Business AccountsE.
Franchisor Replaces Business In Present TerritoryIII.
EXPANSION OF TERRITORYIV.
DECREASING OF TERRITORYA. Twenty Percent Of Bonzai And BlitzB. Udner 1.2% At End Of Five YearsC.
Franchisee Written RequestV. RENEWALSVI.
PURCHASING ADDITIONAL TERRITORIESA.
QualityB. Area Representative ReportsC. Open AreasD.
One Half Area1. Costs2. RoyaltiesVII.
DEMOGRAPHICSVIII. WEATHERIX. COMPETITION"Lance Winslow" - Onlnie Think Tank forum board.
If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.Net/wttbbs/
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Territory Limitations Policies for Franchised Companies
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