Franchise Territory Agreement Template

The Franchise Territory Agreement defines the geographic and commercial scope of the territorial rights granted to a franchisee in connection with a franchised business. It establishes whether a territory is exclusive or nonexclusive, clearly defines the territory by written description only and limits the franchisee’s rights to a single approved location. The agreement also reserves broad rights to the franchisor, restricts marketing outside the territory, conditions territorial rights on performance standards and allows modification or revocation of territory under defined circumstances.

The agreement is completed by the franchisor and the franchisee. The parties enter identifying information, define the territory by written description, confirm exclusivity status if applicable and execute the agreement.

Once executed, the agreement is retained by both parties as part of their franchise records. It is not filed with a government authority but may be reviewed during audits, franchise disputes or regulatory inquiries related to franchise operations.