Some franchising companies will use the method of selling master franchisees in specific regions to expand their brand-name and grow their companies. Each time a master franchisees sold a new marketing area in region of influence will be established, where the master franchises will in turn sell other franchises.

The marketing area will need to be clearly defined and delineated on a map and a description of what the marketing area will consist of must also be clearly stated in the franchising agreements. It is for this reason that below I have listed a clause which I put into our franchise agreements for our master franchises which discusses the marketing area for master franchise operations;

1.2 Marketing Area

Franchisee is hereby granted a nonexclusive Marketing Area defined by geographic boundaries as determined by Franchisor in its sole discretion after giving considerations to relevant demographic information, including the number of vehicles, population and demographics, the actual boundaries of which are set forth on Exhibit 1 attached to this Agreement. Franchisee may not conduct any advertising that is circulated outside the Marketing Area or otherwise solicit customer accounts that are located outside the Marketing Area without the prior written consent of Franchisor. Franchisee may not solicit customers within the Marketing Area with respect to Services that would be provided to such customers both within and outside the Marketing Area (such customer being referred to as a