Franchise Glossary
Encroachment
What is Encroachment in franchising?
When a franchisor opens a new franchise location, company-owned unit, or online sales channel close enough to your existing location to pull away your customers and reduce your revenue. Even when your franchise agreement includes a protected territory, the protection may be narrower than you think. Many agreements explicitly reserve the franchisor's right to sell through e-commerce, delivery apps, or non-traditional venues within your area. This is one of the most common franchisee complaints across the industry.