An exclusive franchise is a type of franchising agreement wherein the franchisor grants to the franchisee the sole and exclusive right to operate the franchised business within a specified territory. This means that the franchisee has the monopoly rights to sell the products or services associated with the franchise in their designated area, and no other franchisees of the same brand can operate within that region. In return for this exclusivity, the franchisee usually pays higher fees than they would for a non-exclusive franchise agreement.