An expanding business that franchises will allocate a specific area franchisees may operate. The allocation of franchise territories plays a vital role in the market segment and customer base to which a franchisee can sell. Thus, the task of allocating the franchise territory is critical to each franchisee’s success.
Know the Region
The first, and foremost, part of franchise territory mapping involves knowing the area. From demographics to the customer profiles of the target audience, knowing these details is crucial. Only then can the franchise reach out to its audience.
Having two franchisees operating in the same, or overlapping, territory can cause conflict. The objective is to have substantial distance between them so that the customers are not left to decide which to patronize. GeoMetrx software can provide franchisors with the ability to allocate territories to the franchisees without causing an overlapping territory problem.
Meet the Minimum Requirements
When a franchisee opens a territory, a break-even analysis has been drawn up so that the owner understands what it will take to turn a profit and become a viable business entity in the area. Franchise territory mapping can play a vital role that will allow the franchise to work out all the factors that would allow for the franchisees’ sustainability.
When a particular territory has more than one franchise, it always helps to have them follow specific rules and guidelines that would keep things flowing smoothly. From deciding on boundaries to marketing criteria, everything should be determined before the business starts to operate.
Keep It Simple
It is the rule of business. The more complex and complicated the strategies, the more difficult it becomes to operate the franchise. Hence, to keep the goals of negotiations and territory simple, the franchise needs to have basic rules and uncomplicated processes.
These are just some of the basics one needs to focus on to make franchise territory mapping practical and simple. Geometrx has software which has proven its worth in this regard. It not only helps map out locations but ensures that the franchisees are exposed to better sales opportunities. To know more about the services we provide, schedule a free demo today.