Mason Sier Turnbull deciphers the franchise territory
In this article, I will outline the different types of territorial provisions that I have come across and what benefits, if any, they offer franchisees. In doing so, I will examine some of the different types of franchise systems and explain what I believe are the underlying reasons for the franchisor inserting provisions relating to territories.
Before proceeding with this analysis, readers should be reminded of the Franchising Code of Conduct disclosure document provisions relating to territories.
A franchisor must, in its disclosure document, disclose:
1. Whether the franchise being offered for sale is for an "exclusive" or "non-exclusive" territory or whether the franchise being offered for sale is limited to a particular site.
2. Whether, within the territory the subject of the proposed franchise agreement:
a. Other franchisees may operate a business that is substantially the same as the Mason Sier Turnbull . 15.08.2007
FCA Member
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Contact Mason Sier Turnbull
315 Ferntree Gully Road
Mount Waverley
VIC 3149
Tel: +613 8540 0287
Fax: +613 8540 0202
