A franchisee’s territory must be clearly defined. Those details will be incorporated in the franchise agreement between Big Mouth Direct and the franchisee.
The territory will be exclusive to the franchisee. The size of the territory will be determined by the number of small-to-medium sized businesses that the franchisee decides on for the operations of his or her business. Franchisees can determine start small and later determine if they wish to expand their territory. Franchisees will pay one dollar ($1.00) per small-to-medium sized business in their exclusive territory. For example, if a franchisee determines to secure an exclusive territory with ten thousand (10,000) small-to-medium sized businesses, Big Mouth Direct will add an additional ten percent more businesses in the territory-in this example, another 1,000 businesses, to offset any listings in the franchisee’s exclusive territory which may be large retail chains, businesses that relocated or may be out of businesses. That way, franchisees are ensured the proper number of small-to-medium sized businesses in their territory.
Further, Big Mouth Direct gives its franchisees an option to expand its territory for ninety (90) days from the signing of the Franchise Agreement. This provision allows the franchisee to approach the Big Mouth Direct business conservatively. Then, if the franchisee enjoys early success, he or she may increase the number of small-to-medium sized businesses by expanding its exclusive territory.
Territories may be defined by actual zip codes and will include all of the small-to-medium sized businesses within the zip codes. However, in the event that a franchisee does not wish to operate within an entire zip code, the specific streets will be used to define the perimeter of the territory.