A clause in a franchise agreement that specifies a geographic area in which a franchisor may not compete with a franchisee is known as:

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A territorial clause in a franchise agreement sets out the geographic area in which a franchisor may not compete with a franchisee. This is included in most franchise agreements to protect the franchisee's investment and ensure that the franchisor does not undermine the franchisee's business by opening competing locations nearby. Renewal clauses specify the conditions under which a franchise agreement can be extended or renewed, operational standards clauses set out the standards and requirements that the franchisee must adhere to in their daily operations, and site selection clauses specify the criteria for selecting and approving new locations for the franchise.

A Clause in a Franchise Agreement That Specifies a Geographic