Choosing your territory right and well from the beginning will have a huge impact on your future franchise success. How big/small, what areas are covered, the demographics, the similar businesses, the marketing opportunities, crossovers and more.
Here are some things to consider when negotiating your territories:
- Quality and quantity matters – it’s not just about how big you can get, but what’s inside your territory. For us we’re looking at areas with families and schools, because we’re here for the parents and kids of our communities. If our clients have to travel to far or can’t find a spot to park it’s not going to work.
- Crossover territory – think about how your territory will overlap with your fellow franchisees and your competitors. For example you may have a competitor that is far enough away from where you are thinking of building, but if you map the territory you may realise that your advertising areas overlap.
- Marketing – this is an interesting area that you should discuss with your franchisor. Are you allowed to market your product/service outside of your area. In a day and age where we have an audience of the entire world at our fingertips, how do we square advertising in someone else’s space. Is that a bad thing? It might help them? It might help you? Good to look at the detail in your agreement.
We hope that helps! We’ve done alot of thinking on this in our agreements and would be happy to talk this out with you if you’re interested, just drop us a line.