Franchise Glossary
FDD Item 12
What is FDD Item 12 in franchising?
The section defining your territory rights: what geographic area you control, what protections you have against competing units opening nearby, and any carveouts or exceptions. Item 12 is where vague territory protection language becomes legally binding. Some franchisors offer robust exclusivity; others reserve rights to sell through alternate channels (online, kiosks) even within your territory. Review this section closely with a franchise attorney.