How to Manage Franchise Territory Pricing on Shopify from One Store

Franchise and distributor networks in India often have contractual pricing agreements per territory: Maharashtra pays MRP ₹999, Gujarat pays MRP ₹949, and the rest of India pays ₹929. These agreements reflect distributor margins, local competition, and logistics costs negotiated region by region.

The problem: Shopify has one product price. Running separate Shopify stores for each territory creates 5–10× the operational overhead. Lokally solves this with state-level pricing rules from one store and one catalog.

How Territory Pricing Works on Shopify with Lokally

Lokally adds state-level pricing rules to your Shopify checkout (via Shopify Functions). When a shopper enters their delivery pincode:

1. Lokally identifies the state from the pincode
2. Checks if a pricing rule exists for that state
3. Applies the territory-specific price at checkout

The shopper sees the price for their state. Shopify records the order at the actual checkout price. You can reconcile orders per state for distributor reporting.

Setting Up Territory Pricing

Step 1: Map territories to states

Create a simple table:

Step 2: Create one pricing rule per territory

In Lokally → Regional Pricing → New Rule (repeat for each territory):

1. Location type: State
2. Select all states in this territory
3. Pricing type: Fixed Price Override (set to the territory MRP)
4. Save

For the "Rest of India" territory, you don't need a Lokally rule — just set your Shopify product price to ₹929 (the default). States not covered by any Lokally rule get the base Shopify price.

Step 3: Verify with test orders

For each territory, use a test Shopify customer with a delivery address in one of the territory states. Verify the correct MRP appears at checkout before payment.

Product Availability by Territory

Some franchise setups include exclusivity: a product is available only in Distributor A's territory, not Distributor B's.

In Lokally → Location Content → Product Visibility:

1. Create a rule to show a product/collection only for specific states
2. The product page will 404 (or show "unavailable") for shoppers in other states

This handles exclusive territory products alongside territory-specific pricing.

Order Reconciliation for Distributors

Each Shopify order records the customer's delivery state in the shipping address. To generate territory-specific order reports:

1. Admin → Orders → Export (filter by date range)
2. In the CSV, filter by Shipping Province (state)
3. Each row's price is the territory-adjusted price (the actual checkout price)

Share the state-filtered export with each distributor for reconciliation.

Protecting Against Cross-Territory Orders

A shopper from Maharashtra might enter a Gujarat delivery address to get the lower Gujarat price. Lokally applies the price based on the delivery pincode (the actual shipping destination), not the billing address. This limits gaming to cases where shoppers actually ship to a different state.

For high-value products where cross-territory ordering is a concern, check orders where billing and shipping states differ and flag unusual patterns.

Summary

Territory pricing on Shopify for franchise and distributor networks is solved by Lokally state-level pricing rules. One store, one catalog, one Shopify admin — with territory-specific prices applied at checkout based on the delivery pincode's state. Setup takes under 2 hours for 5–8 territory groups.