Choosing the Right Franchise Territory

What is a franchise territory?
Simply put, a franchise territory is the area within which a franchisee is authorized to establish and operate a franchised business. The area will be agreed upon during the discovery process, and will be secured when a franchise agreement is signed.

Choosing the right territory

Size
Bigger isn’t always better when it comes to franchise territories. Sometimes, having a smaller, more focused customer base makes it easier to establish a strong market presence. Similarly, a larger territory doesn’t always mean more of your target customers.

Target Households
General population might not be that important in your territory. For most franchise opportunities, a small portion of the population is responsible for a large portion of the business. Therefore, it’s important to focus on the households with the target consumers for your business. At Premium Service Brands, we’re able to pinpoint target households and determine which territories are densely populated with these households.

Geography
A more obvious consideration, the geographic layout of your territory is important. Can you easily get to your customers from your home or office? Are there significant barriers that could keep you from getting from one location to another?

Choosing the right territory is vitally important to the success of your business. When deciding on a territory, make sure to take all of these factors into account.