Thank you for your clarification.
At this point, first, it is not up to you to be sued, it would be the franchisor who would be sued, since they violated the distance agreement, not you. As you mentioned, you were the first one there, so you are not liable to the other franchise for any such violation, you could have sued him and the franchisor for the distance violation when this first took place.
It is not only unlikely that you would be sued, there is no legal basis for suing you over this. Any legal liability would be on the franchisor and not on you.
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