What is the 'Designated Territory' for a Casa De Corazon franchise?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
At the time we approve a site for your Center, we will also grant you a territory. We refer to this territory as the "Designated Territory" and we describe it in the Rider to your Franchise Agreement. Your Designated Territory will generally encompass an area surrounding your Center that is the lesser of a 3 mile area or an area encompassing 10,000 households. However, the exact size and shape will depend upon various factors including whether your Center is located in a metropolitan area, the size of your Center, and the number of students you are licensed to care for in your Center. We will allow you to relocate your site so long as it continues to be in your market, is not within the Designated Territory of another of our franchisees, and meets our other then-current requirements for a site. If we allow you to relocate your site, we also may change the Designated Territory to conform to our then-current standards for the grant of similar territories.
Source: Item 12 — TERRITORY (FDD pages 31–33)
What This Means (2025 FDD)
According to Casa De Corazon's 2025 Franchise Disclosure Document, the 'Designated Territory' is granted when the franchisor approves a site for the franchisee's center. This territory is described in the Rider to the Franchise Agreement. Generally, the Designated Territory will encompass the lesser of a 3-mile area or an area encompassing 10,000 households around the center. However, the exact size and shape of the territory depend on factors such as whether the center is in a metropolitan area, the size of the center, and the number of students the center is licensed to care for.
Casa De Corazon does not offer exclusive territories. Franchisees may face competition from other Casa De Corazon franchisees, outlets owned by the franchisor, other distribution channels, or competitive businesses controlled by Casa De Corazon. The franchisor retains various rights within the Designated Territory, including the right to operate or allow others to operate similar businesses that do not use Casa De Corazon's marks, and to operate similar businesses outside the Designated Territory under any trademarks, even if they compete with the franchisee's center.
Casa De Corazon also retains the right to sell products to anyone, regardless of location, and to sell or grant others the right to sell competitive goods or services through various channels, including the Internet. They can acquire similar businesses in the Designated Territory or sell their business to anyone, even competitors. Furthermore, Casa De Corazon can operate or allow others to operate businesses that sell their curriculum or recipes, either under their marks or otherwise, inside or outside the Designated Territory.
It is important to note that Casa De Corazon can decrease the size of a franchisee's Designated Territory if, on the 2-year anniversary of opening, the center's actual enrollment is less than 90% of its actual capacity on a full-time equivalency basis, or if the franchisee does not maintain at least 90% enrollment annually thereafter. The franchisor will provide notice of such a decision. While franchisees can solicit clients outside their Designated Territory, they need approval for internet, telemarketing, or direct marketing efforts. All advertising must be approved, and written approval is required for any website or social media presence related to Casa De Corazon.