I have a small business and a large franchise is moving into the neighbouring unit... can they sell the same goods as me

Of course they can, it's called competition.

You may be confusing this with the franchises themselves. They have con-competing contracts regarding territory, locations, and pricing.

Yes of course, have you not went down the road and seen 4 or 5 of the same type of business in a row.

As long as you provide a good service, and/or keep your prices in line, you just do your best.

Of course this is why small harware stores or other stores have hated Walmart, they move into town and put dozens of small businesses out of business.

But then, in the same mall, is a dozen other shoe stores and clothing stores who compete by selling higher end items