Can a Franchisor operate in a Franchsiees territory?

Question: Can a Franchisor operate in a Franchsiees territory?

Answer:

This will depend upon whether the franchised territory is non-exclusive or exclusive. If it is non-exclusive then yes, the Franchisor can operate within the specified territory. If it is exclusive then no, the Franchisor cannot.

However, it is common for a Franchise Agreement to contain a provision that allows for a Franchisor to operate within the franchised territory even though it is an exclusive territory.

Answered by Masao Watanabe

Masao is a franchise lawyer. After completing a Bachelor of Commerce at the University of New South Wales in 2009, Masao pursued a degree in law, graduating in 2014 with a Juris Doctor from the University of Sydney.

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