In many cases, yes you will. You will be competing with franchisees in the same network selling exactly the same products and delivering the exactly the same services; you will also be competing with franchisees in other networks selling very similar, possibly even the same, products and services.
“How can this be”, you may wonder, “when I thought I had an exclusive area?” You may well have an exclusive area inside which only you can promote the business, or a location from which you can operate, but you can’t stop the customer buying from whoever they want to. For example, there could be several outlets of a particular food service, say coffee, concept in the same city, sometimes even in the same street. If you are operating, say, a domestic services business, a customer may live between you and another franchisee, or they may know or have been recommended to your colleague.
In either of the above cases the customer will go where they believe they will get the best service so it had better be you that is offering that ‘something extra’ which may not be an integral part of the franchising system – maybe simply a better attitude and approach to customer service from your staff? Every network has some franchisees who are better operators than others. The onus is on you to be the best in your area, so you will have the more successful business.