Territorial Exclusivity in Franchises

Territorial Exclusivity in Franchises

Although without a doubt, franchises offer a “recipe for success”, in any sector, the practical aspects of all business models continue to be applied. As in a street saturated with stores selling the same products, the profitability of all establishments will be reduced; the franchisees operating in the same region will divide the profits, a fact that does not benefit either the franchisees or the central. For this reason, the concept of territorial exclusivity is created.

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