Every franchise agreement should discuss the issue of the source of customers. This is known as the geographical territory, protected territory or exclusive territory. Many agreements spell out the zone or area of your customer source. It is important to understand the Geographical, Protected or Exclusive Territory Clause in the Franchise Agreement.
In franchising, the process of connecting a name to a particular product or service. When a product is generally accepted as if it were exclusively belonging to a particular company even though it is produced by others.