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Encroachment can occur when a franchisor, through company-owned outlets or by granting other franchises, competes in the same market with an existing franchisee's business, often leading to disputes between franchisors and franchisees. Most franchise systems accord franchisees some form of protected area in which it will be secure against competition from a similar branded outlet for a period of time. In the franchise agreement, the grant of a protected territory is usually followed by the reservation of rights provision. This article analyses the law and case law in various countries around the world in relation to territorial exclusivity and reservation of rights with a particular focus on franchise specific disclosure regulations, competition law, contract law and the concept of good faith. Franchisors focused on expanding their systems in other markets must understand the relevant legal frameworks in order to grapple with the intricacies of territorial development and the consequences of encroachment. [ABSTRACT FROM AUTHOR]

The article evaluates the relationship between a private equity and a franchise system by looking at both from several views which include that of the U.S. private equity investor, that of the U.S. acquisition counsel, and that of the general counsel of a target firm. A perspective of a European outside counsel is also discussed. Other topics include the history and growth of private equity, legal issues connected to acquisition of such and how the interests of both differ from each other.