Definition:
Item 12 in a Franchise Disclosure Document (FDD) explains the territory you’ll receive as a franchisee. It tells you the size, location, and whether you have exclusive rights in that area. This section also covers how territory changes work, like relocating or expanding later on.
Use It in a Sentence:
Before signing the agreement, Mia read Item 12 of the FDD to understand the territory she’d be getting with her CoolVu franchise.
Why Is Item 12 Important?
Your territory defines where you can operate your business. Item 12 makes sure you know exactly where you can sell, install, and promote CoolVu products. That means fewer surprises and less confusion about where you’re allowed to grow.
Some territories are exclusive, meaning no other franchisee can operate there. Others may have limits based on population or zip codes. Knowing this up front protects your investment and helps avoid overlaps with nearby CoolVu owners.
This section also explains how you might get new territory later, or what happens if you want to move. It’s a smart way to plan long-term growth. You’ll know your boundaries and your rights from the start.
With CoolVu, understanding your territory means knowing your market. That helps you focus your efforts and serve customers with confidence.
Related Dictionary Terms:
- Franchise Disclosure Document (FDD) – Legal summary.
- Item 1 in FDD: Identifies ownership, location, and business ties.
- Item 2 in FDD: Shows leadership experience behind the brand.
- Item 3 in FDD: Lists legal history and potential risks.
- Item 4 in FDD: Discloses past bankruptcies for review.
- Item 5 in FDD: Upfront startup fees listed.
- Item 6 in FDD: Lists ongoing fees for operating the franchise.
- Item 7 in FDD: Outlines estimated startup and operating costs.
- Item 8 in FDD: Lists supplier rules and product standards.
- Item 9 in FDD: Lists franchisee duties and responsibilities.
- Item 10 in FDD: Explains franchisor financing and loan options.
- Item 11 in FDD: Lists franchisor training, tools, and support.
- Item 13 in FDD: Lists trademarks and legal protections.
- Item 14 in FDD: Covers patents, copyrights, proprietary info.
- Item 15 in FDD: Explains owner’s operational role.
- Item 16 in FDD: Lists what franchisees can sell.
- Item 17 in FDD: Renewal, transfer, & ending agreements rules.
- Item 18 in FDD: Shows public figures’ roles and ties.
- Item 19 in FDD: Shows sales numbers and earnings data.
- Item 20 in FDD: Tracks openings, closings, and transfers.
- Item 21 in FDD: Shows audited financial statements.
- Item 22 in FDD: Lists all required franchise contracts.
- Item 23 in FDD: Confirms receipt and starts 14-day wait.
