FTC “Clarifies” Item 12 Requirements

Many franchisors grant exclusive territories to franchisees but reserve the right to open franchised or company outlets in “non-traditional venues” like airports, arenas, hospitals, hotels, malls, military installations, national parks, schools, stadiums and theme parks.  In FAQ 37, the FTC staff states that sales in non-traditional venues can no longer be characterized as exceptions to the a grant of territorial exclusivity.  Instead, the reservation of rights in non-traditional venues means that the entire territorial grant is non-exclusive.  Read entire article… Author:  Tom Pitegoff,  Source:  International Association of Franchisees and Dealers