I get why the language is in there, it’s to protect franchises from infringing on others franchises territory, but have never actually seen it in writing. It might explain why “some” dealers are Leary of Walk in’s.
Thanks for the link.
Territory Granted: The franchisor grants franchisees the right, subject to terms, to use the Snap-on Program, and to purchase products from the franchisor for resale only at the locations identified on their List of Calls. The List of Calls consists of a series of business addresses or “stops” at which the franchisor has determined that there are, or should be, tool users who purchase their own tools. While the number of potential customers on a List of Calls will vary to some extent from franchisee to franchisee, it is the franchisor’s intent that each List of Calls contains at least 200 potential Core Customers at the time a Franchise Agreement is signed. In addition to Core Customers, the List of Calls identifies potential additional tool purchasers either at the same or additional business addresses who are not considered potential Core Customers according to Snap-on's criteria, but to whom franchisees are allowed to sell Products and are identified as potential “Exception Customers.” With some exceptions, during the term of the Franchise Agreement, if franchisees are not in default under the Franchise Agreement, the franchisor will not sell, or license others to sell, Products at those locations identified on the List of Calls without the franchisee’s consent.
Obligations and Restrictions: Franchisees will use their best efforts to promote aggressively and develop fully the sales of products at stops on their List of Calls. Franchisees will maintain an inventory of products in at least the minimum amount specified in the Snap-on Program in order to maximize their sale of Products and provide service expected by their customers. Franchisees must refrain from engaging in activities that would conflict with these purposes and they will devote all necessary business attention and efforts to these purposes. Franchisees will not sell or give away items of merchandise which are directly competitive with the products that are manufactured by or for the franchisor, except items of merchandise which franchisees have taken as a trade-in. In addition, franchisees will refrain from selling items which are inappropriate or inconsistent with a business selling tools and equipment. Franchisees may sell products only to customers at stops on their List of Calls. Franchisees will assist the franchisor in honoring all warranties on products, which means that franchisees will perform service on tools and equipment at the customer’s place of business.
