Why You Should Regularly Review Your Franchise Territory Network

Select Your Franchise (blog):

Changes in your target market or in buying trends, the deletion of old products and the introduction of new ones, and last, but not least, brand presence. These are all factors that mildly or otherwise cause shifts in the profile of your typical customers as time progresses.

For franchisors that operate a territory-based model, this means that the commercial opportunity available to your new and existing franchisees has changed, for better or worse. What may have been the right criteria for your territories last time you reviewed them, may now be incorrect. And as the franchisor, you are ethically bound to ensure that these changes are not detrimental to your franchisees, and therefore to you.

Additionally, within your territory network review you should be looking at franchisee penetration rates against their target market, as well as the location of their customers in relation to their ‘base of operations’ and territory border. Read full article.

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