Exhibitor News

A protected franchise territory is disclosed in Item 12 of the Franchise Disclosure Document (FDD), where every franchisor must state whether a territory is exclusive, protected, or non-exclusive. Under current FTC guidance, a brand that reserves carve-outs such as online sales, national accounts, or non-traditional venues cannot legally call its territory "exclusive." Polar Tint awards each franchisee a designated, protected territory: a contractual commitment that no second Polar Tint location will be placed inside that area while the franchise agreement is in good standing.

That protection matters more in this category than in most. A Polar Tint shop runs six service lines - auto window tint, residential and commercial window film, paint protection film, ceramic coating, and vehicle wraps - several of which depend on local reputation and repeat business built up over years. By contrast, dealer and independent-installer relationships come with no territory protection at all: a film manufacturer can authorize a competing installer across the street from an existing dealer, and an independent shop has no franchisor commitment stopping a competitor from opening next door.

Read the full article: https://polartintfranchise.com/insights/what-is-a-protected-franchise-territory/