Can I sell or take a property from another franchisee's area?

If no franchisee owns the postcode in which the property is located, then all franchisees have an equal right to the property on a first-come first-served basis. Firstly, let me say that I hope this guide is used as exactly that, a guide. This is not part of a rule book and deviating from this guide will not incur penalties. Each and every franchisee has the right to exclusivity in their territory and therefore has the right to deny another franchisee taking a property from their territory. Sourced believe that collaborating with other franchisees will make both franchisees more profitable, which is the main purpose in creating the following guidelines. For the rest of the guidelines, I am going to use examples and will label the franchise areas and owners with capitalised letters, for example Franchisee �A�, �B� or �C� etc. Option 1; Ideally, we would like the network to work on a shared basis which we�ll call Option 1, whereby franchise owners A and B agree that A can take a deal out of B�s area, on the understanding that B can do the same at some point in the future with no transaction between the franchisees taking place. This relied on both franchisees benefiting equally and would need to be reviewed every 6 or 12 months to ensure there is a fair exchange for both parties. In most cases this will work well as Franchisee �A� might be looking for completely different opportunities than Franchisee �B� and adopting the reciprocal deal means both now have more area in which to search. Option 2; If a reciprocal arrangement isn�t the right place to start, as described in Option 1, (for example the franchise territories �A� and �B� are not near each other, or if �A� takes more deals from the arrangement than �B�) then putting a compensation structure in place should be adopted, which we�ll call Option 2. The amount of compensation paid should be directly proportional to the amount of effort from both sides. If franchisee �A� finds the property and franchisee �B� finds the investor, this should be a 50:50 fee or profit split. If franchisee �A� finds the property AND the investor, however the property is in franchisee �B�s� area, �B� has not put any effort into the deal, however they should still be compensated for a property being taken from their area. In this case we think an appropriate amount of compensation is between 10%-20% of the fee or profit. The above cases are simplistic and should be used as guidelines for more complex situations. Sourced believe in lifetime value and collaboration. If you work with other franchisees, more property will be sold from your territory and therefore your turnover will increase, you will then also have the opportunity to sell or convert properties in other territories, again increasing your turnover.