How to evaluate a franchise territory
A territory is more than a postcode map. It is the commercial environment in which the operating model must work.
Understand the boundary
Ask whether the territory is exclusive, what activity is protected and whether online or national accounts sit outside it. Read the agreement rather than relying on sales language.
Test the demand logic
Examine the customer profile, density, local competition, travel time and cost of reaching the market. A large geography is not automatically a better territory.
Ask how change is handled
- Can boundaries be altered at renewal?
- How are overlapping enquiries allocated?
- Who owns customers that move?
- May another channel sell into the area?
- What evidence was used to size the territory?
Turn your research into a sharper starting brief.
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