Does a dealership provide territorial protection?
If you’re located in a town, your area of operation is protected to the extent of whatever format you operate as it relates to the boundaries of that particular town. For example, if you operate a smashmouth® classic, your protection will cover that particular format, but will not necessarily extend to any other format. If someone wanted to open a smashmouth® nonstop within your town, they could be allowed to do so.
If you’re located in a city, your area of operation is protected to the extent of whatever format you operate as it relates to that particular section of your city. For example, if you operate a smashmouth® nonstop in Manhattan, your protection will cover that particular format, but will not necessarily extend to any other format. If someone wanted to open a smashmouth® classic in your part of Manhattan, they could be allowed to do so. If someone wanted to open a smashmouth® nonstop in another part of Manhattan, they could, under certain circumstances, be allowed to do so.