“Encroachment” is a term used in the franchise industry to describe sales and revenues being transferred from one location to another because of their proximity.
Encroachment and Franchisee Claims of Constructive Termination
Encroachment" is a term used in the franchise industry to describe sales and revenues being transferred from one location to another because of their proximity. Litigants sometimes claim the encroachment is so extensive so as to threaten the viability of the existing location. In these instances, claims have been asserted for constructive termination because the existing location is alleged to no longer be viable. More likely, the claim for constructive termination is not viable.
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