Encroachment

Encroachment is a term used in the book Fast Food Nation by Eric Schlosser.  The definition giving in he book is the practice of similar franchises been close to each other. When stores that are identical are around each other, the business becomes more completive and sales are decreased. Many franchisees hate it because it is cutting down on profit and they still have to pay the same fees for renting the franchise. This is becoming more and more common as we see, anywhere there is a Starbucks, this is a Dunkin Donuts near by or another Starbucks in order to try and still make great profit store owners try and work together to maximize profits for both stores. This was a great ideal except for the fact that the franchisor would tell them it is conflicting the policy that they agree upon and tried to sue the franchisees for trying to do it.