Territorial Restriction

/ˌtɛrɪˈtɔːriəl rɪˈstrɪkʃən/

Definitions

  1. (n.) A contractual clause limiting the geographic area in which a party may operate or sell products or services.
    The franchise agreement included a territorial restriction preventing expansion into neighboring counties.

Forms

  • territorial restriction

Commentary

Territorial restrictions are commonly used in franchise and distribution agreements to define market boundaries and prevent competition within specified areas.

This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.

Draft confidently with Amicus

Create, negotiate, and sign agreements in one secure workspace—invite collaborators, track revisions, and keep audit-ready records automatically.

Open the Amicus app