I propose this thought on the subject of Franchisee territory reduction based on performance for a Mobile Business Model. Please read the sample policy below as it explains the reasoning and methodologies considered to extend brand without risking underdeveloped territory. We will use a Mobile Car Wash Franchise Business for this discussion. This sample is speaking from the Operation Manual of the franchisor to the franchised unit:

If the volume of your business decreases to forty percent of your original volume, we may request that you decrease your territory. During the first four months after purchasing your franchise, your business is just really getting going and you can kind of see that your franchise is working. Any time after the four-month start up period, if your business drops to forty percent of that initially achieved volume, you are not servicing your area