Future Business Leaders of America (FBLA) Entrepreneurship Practice Test

Some franchisers offer __________ including exclusive geographical distribution rights.

1. Territorial Protection

2. Startup Funding

3. Marketing Support

4. Training Programs

The correct answer is: Territorial Protection

The correct answer is "Territorial Protection" because it refers to the practice of granting franchisees exclusive rights to operate within a designated geographical area. This arrangement helps to protect franchisees from competition among other franchisees of the same brand, ensuring that they can establish their business without the threat of being undercut by close proximity competitors. Territorial protection is a significant incentive for potential franchisees, as it can enhance their business viability and long-term profitability. Other options, while relevant aspects of franchising, do not specifically address the unique feature of exclusive geographical rights. For instance, startup funding pertains to financial assistance for opening the franchise and does not focus on geographic exclusivity. Marketing support involves promotional assistance provided to franchisees, which is about brand development rather than territorial distribution rights. Training programs deal with the education and onboarding of franchisees and their employees, ensuring they understand how to operate the business effectively; however, this also does not relate to geographic exclusivity. Thus, territorial protection stands out as specifically addressing the distribution rights aspect within franchising agreements.