How are franchise territories defined?

Where the franchise consists of fixed retail premises, the franchisor may designate a territory within which it will not place other franchisees or operate itself a similar unit. In the case of a mobile franchise, the question of territorial scope becomes more significant as the franchisee will usually be given a defined area in which to operate. A simple method would be to state the territory is a certain radius from the premises. If the franchisor does not supply a map showing the extent of that radius, the franchisee will need to make further investigations.  Possibly the simplest way to define a territory is by reference to a map, whereby the territory is marked by a line drawn in a specified colour pen.  A popular method of designating territories is by reference to postcodes. The main problem with designating postcodes is that they can change. Where this is the case, the franchisee needs to check if the franchise is to operate in the postcode areas granted at the date of the agreement or the postcode areas as it stands at any time during the term. This should be clarified in the franchise agreement.