You are signed in as
Sign in now
How to Optimize Territory Development for Your Franchise
From The Buxton Co
As you know, itís a competitive market for franchisees, who compete not only for customers, but also for internal resources and attention from their franchisor.
Franchisees know that they have a higher likelihood of failing if they are poorly managed by their franchisor, which hurts both the franchisee and the reputation of the brand.
One of the most difficult management challenges facing franchisors is defining franchise territories in a way that minimizes cannibalization, but doesnít leave the market underserved. Franchisors who do this well set their franchisees up for success.
So how should a franchisor determine franchise territories?
Strategic franchisors make objective, data-driven decisions when it comes to franchise territory determination, rather than basing it on guesswork.
Franchise territories should be granted only after a data-driven analysis has been conducted to make sure that the franchisees donít eat into each otherís profits Ė because itís simply too risky to assume that franchisees will pull business solely from within their designated trade areas.
But Itís Not Just About Territories
Brand ownership needs to have an analytic solution based on customer data thatís designed to identify and understand not only todayís customers, but also tomorrowís and 2016ís customers.
Because at the end of the day, customers are the life-blood of every franchise concept.
Franchisors who truly know their customersí lifestyles and behavior patterns have a distinct advantage over those who donít and will be able to support their franchisees with customer insights that will ultimately help the franchisee operate their business better.
The Bottom Line
| Terms & Conditions
| About Us