Territory & location

Online sales rights

The terms governing who can sell to customers in a territory online, and whether e-commerce sales into your area are credited to you.

What it means

E-commerce blurs territory. Online sales rights determine whether the franchisor (or another franchisee) can sell online to customers in your patch, and whether you receive any credit or commission for online orders fulfilled or delivered in your area.

This is one of the most important and most overlooked modern clauses. A protected physical territory means little if the franchisor can sell freely online to the same customers.

In practice

Ask specifically how online and delivery sales are treated: who owns the online channel, whether orders in your territory are credited to you, and how click-and-collect or delivery is allocated.

A real example

A retail franchisee negotiates that online orders shipped to postcodes in her territory earn her a commission, protecting her from the franchisor's website cannibalising her local sales.

Online sales rights, FAQs

Do I get credit for online sales in my franchise territory?

Only if the agreement says so. Online sales rights vary widely, some franchisors credit orders in your territory, others keep online revenue entirely. Clarify before signing.

Can the franchisor sell online into my exclusive territory?

Often yes, unless the agreement expressly prevents it. Even an exclusive physical territory may not cover e-commerce, check the online sales rights specifically.

See the full franchise glossary, the Fee Index or our buyer guides.