Graham Barlow, Managing Director of Tech4T, explains the vital factors that affect a franchise’s approach to sizing its territories.
Whether you are starting a new franchise, running an established brand or looking to expand overseas, you will recognise the need for clearly defined territories – areas in which franchise owners can exclusively operate. Each area needs to provide sufficient business opportunities within a sensible driving distance, and to convince franchise owners to invest their hard earned cash in your business, you will need facts and figures to substantiate projected income.
When territory design is undertaken correctly the rewards speak for themselves: no oversized territories, increased income, easier to sell territories, no conflicts over territory boundaries and more satisfied franchise owners. So it goes without saying that basing territories on a Postcode map or Yellow Pages regions is never a good idea; operating areas must be purposely developed to give franchise owners the maximum chance of success. Read full article.