Franchisors and exclusive territories
In the UK the majority of franchisors offer exclusive territories based on the customer or client base and this is an integral part of what a franchisee gets when they pay their franchise fee.
Many new franchisors take a very simple approach to territory mapping and will rely on using county borders or basic postcode (e.g. WV for Wolverhampton) data to define their territories, using out of date demographic data available for those areas in order to keep their costs down.
On the face of it, and to many potential franchisees, this practice may seem fine, but the reality is that it is extremely difficult for a franchisor to create balanced territories by way of demographics using this method, and it is ultimately they who suffer when the franchisee is not able to fully support the business plan.
With professional digital mapping costs starting at £1,000 these days, franchisors have a duty of care to look into sorting their franchise territories out, or getting it right from the start if just launching.
Mapping and the recruitment process
Mapping plays a critical role in the sales process, so is not just an invaluable tool in terms of ensuring the demographics of each territory are as similar as they can be and offer a potential to build a good business within them, but offers huge reassurance as part of the sales process to potential franchisees looking at your business and can often be one of those ‘x’ factors in the decision making process which most franchisors simply don’t realise.
Using mapping to strengthen the franchise agreement
Aside from building great confidence in a potential franchisee, a balanced territory map that is kept up to date with the latest demographic data further backs up the agreement entered into by the franchisee, and franchisees have a full and detailed knowledge of the territory they are investing in.
To find out more about mapping
A combination of any demographic available can be used to build, restructure, or simply display territories that have already been designed, and if you would like to have a chat about any of this, please complete this form with all your details and we will be in touch.
