29 Oct Should I Purchase a Franchise without an Exclusive Territory
===========Question: I am interested in a franchise for WSI (Internet Consultants) They only offer non-exclusive territories to their franchisees. My first reaction is that this is not a good thing, but I could be wrong. I realize that this is in the franchisor’s favor, but is non-exclusive territorial rights something that I should deliberately avoid?
===========Reply: The exclusivity of a franchise territory depends on the business. Duncan Donuts can be located a mile or two apart without adverse impact. What you are buying in a francise is first a NAME. If you have not heard of the franchisor’s name before, then all you are doing is building up their name. Secondly, you are purchasing a unique product or system. An example, once again is Duncan Donuts. If I go to a DD I know what doughnuts, coffee, etc. is available. It is an identifiable product. Finally, the training and business sytems, and ongoing support, can be valuable to the new business owner.
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You should definitely obtain a good business attorney BEFORE you SIGN anything.
I hope this helps!