Currently, there are more than 773,603 franchise establishments in the United States, according to the Statista Research Department. Organizations often seek to expand their operations in other cities, counties or even states. However, determining where to set up new businesses and manage existing ones can be difficult. Franchise territory mapping allows organizations to view their franchise territories on a highly-visual map.
The Basics Of Franchise Territory Mapping
A franchise territory refers to an area in which a franchisee is authorized to establish and operate a franchised business. The franchise agreement determines the size and scope of the franchise territory. Franchise territory mapping aids in the planning and mapping of business data to determine the best locations for a franchise based on where target customers reside. Territory mapping can also aid in the design process and help demonstrate that the franchises will be able to achieve sales goals.
How Does Franchise Territory Mapping Work?
Franchise territory mapping is often used by franchisors to manage franchisee territory opportunities. The mapping process can also resolve issues that may arise when identifying and communicating available and existing territory geography.
With territory maps, business leaders can easily gain access to all franchise territory geography, including pending, sold and proposed territories. Users are also able to generate analysis reports based on territory zip codes or other criteria to learn more about the territories they serve. Franchise territory mapping is a highly effective way to create visual intelligence for a business.
The Franchise Territory Mapping Process
Franchise territories can be defined in one of two ways: strategically or non-strategically. If a franchise has a dedicated executive team, the franchise territories will generally be mapped to a designated market area (DMA). DMAs refer to geographic areas in the United States that represent specific media markets. A DMA can be divided in a number of ways, such as by zip code, geographic boundaries or based on certain demographics.
Non-strategic franchise territory mapping involves mapping a polygon. In some cases, a franchisee and franchisor will have a development agreement that keeps both parties on the same page and holds each other accountable.
Here is a general look at what is involved in the franchise territory mapping process:
Identify Audience, Objectives & Competitors
The first step in franchise mapping involves identifying the target audience. It is important to understand what types of consumers are interested in the products or services being offered and where these consumers are primarily located. This is followed by establishing sales goals and objectives which will provide direction for the business and ensure that the territories established will provide an opportunity to meet these objectives. Finally, businesses will examine any external threats that could impact the franchise’s ability to succeed. This is often competitors that may offer similar products or services locally.
Perform Analyses Of Customer Data
When performing territory mapping, it is important to evaluate market data thoroughly. Consider performing an analysis of customer data to gain data-driven insights on the market. Evaluate influential factors, such as the regions that are over or underperforming, what industries are currently being served, the location of any local competitors and similar factors. It can also be helpful to evaluate past business data, such as past sales numbers from the CRM. This information is useful when planning future workloads, determining present and future needs and when seeking out new opportunities.
Divide Franchise Territories & Assign Locations
Another important component of franchise territory mapping involves dividing territories and assigning locations. When dividing and assigning territories, it is important to create a balanced plan that will set the sales team up for success. Consider the number of accounts in each territory, the location of the highest value accounts and if there are enough potential prospects in each territory to allow sales reps to meet their goals. Also, consider what resources the sales team will need and how sales reps will generate new sales leads in each territory.
What Are Its Benefits?
Many benefits come from sales territory mapping, including the creation of well-balanced territories that will maximize the potential of sales reps and cultivate new opportunities. Balanced territories keep sales reps motivated and allow the company to continue growing and profiting. Franchise territory mapping allows sales teams to better understand their customers and identify which areas are oversaturated and which are undersaturated. Review our blog on the benefits of franchise territory mapping to learn more.
Speak With The Franchise Territory Mapping Experts
Effective franchise territory planning is necessary to reach critical business goals, decrease costs and boost sales. The use of innovative territory mapping software allows businesses to improve their sales territory design and overall efficiency. To learn more about franchise territory mapping or to speak with an experienced territory mapping software professional, contact the experts at Geographic Enterprises.