Answer:
False. Not all franchisors provide geographical protection to their franchise holders. While many franchisors do offer some form of territorial or geographical protection, it is not a universal practice. The extent and nature of geographical protection can vary significantly between franchisors and may depend on various factors such as the type of franchise, industry, market conditions, and the specific terms outlined in the franchise agreement. Some franchisors may provide exclusive territory rights, meaning they grant the franchise holder sole rights to operate within a specific geographic area, while others may implement non-compete clauses or restrict the number of franchises in a particular region. However, there are also franchisors who do not offer any form of geographical protection, allowing for multiple franchises to operate in close proximity. It is important for potential franchisees to carefully review the franchise agreement and discuss territorial rights with the franchisor before entering into a franchise agreement.