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Encrocement - Need Feedback !

Need feedback on how to handle an encrocement issue!

I own a multi-store franchise deal with three locations in which to place stores. We are faced with another franchisee that has placed a store 1.5m (via street access) from a researched location in which we planned on placing a store which is a potential new development.

a. The contract does not provide a buffer zone that addresses protection from other stores not sitting on territory lines; there is a 2.5m distance between stores addressed in the contract, which is essentially stating that we are now pushed at a 2.5 miles radius from their store which is located almost on the line or border of our territory.

b. The territory that we purchased is extremely desirable as far as demographics, however is one quarter the size of the franchisee's territory which is sitting on our line; our entire territory is approximately 3.0 miles, which now leaves us with no area in which to put a store.

c. The other franchisee is now pulling from our customer base as well as their customer base because they are so close!

d. Corporate was made aware of this issue prior to the signing of the other franchisees lease; multiple corporate managers have quietly stated that it was an oversite that needs to be corrected and after many letters and calls...they have reluctantly asked what can they do that is amicable to fix this issue... we need to be compensated...SUGGESTIONS OR CASE STUDIES PLEASE!!!!!


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