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<h1>Distance criterion for franchisees permits local appointments, with hotel chain relaxations and exemptions for hilly and north eastern areas.</h1> Franchisers (AD Category I/II banks or FFMCs) may appoint franchisees within a prescribed radius of their controlling branch; recognised hotel groups/ chains are exempted from the strict locality requirement if the group headquarters lies within that radius; hilly areas (as defined by State/UT) and the North Eastern States are not subject to the distance restriction.