What is a protected territory?
A territory is the geographic area a franchise agreement assigns to a unit — defined by radius, ZIP codes, population count, or, in trades like senior care, population over 65. A "protected" or "exclusive" territory means the franchisor won't license another unit inside it — but read the carve-outs: online sales, national accounts, and non-traditional venues often remain fair game. Item 12 of the FDD holds the details.
Two territories with the same square mileage can differ tenfold in customers, so insist on the defining metric that matches the trade — households for home services, population 65+ for senior care, daytime traffic for food. And check whether protection survives renewal: some agreements shrink or redraw territories when the term renews.