Your Guide To Decide the Franchise Territory For Maximum Benefit

1. Your Guide To Decide the Franchise Territory For Maximum Benefit When you start to consider the franchise opportunity, there are many factors you need to keep in mind. Not every franchise is the same. From the prospect to the territories, there are so many things you need to check ardently otherwise you may end up in the wrong decision. The territory of the business is a prime factor that one should not avoid. However, many people fail to notice this important factor and as a result, it can affect the business. It is a common conception that the larger territory owned by the ​ European Franchisees​, the prospects of profit are higher. It is a greater potential to ensure better growth and ROI from the franchise business. So, here is your complete guide to know and understand everything about the franchise territory. What is a Franchise Territory? The franchise business depends on the neighborhood you are serving. The franchisor identifies a location that comes under the service area of the particular franchisee. While selecting the territory, the ​ European Franchisees should keep in mind the population, average age, and competition of the location. In the Franchise Agreement, there is an Exclusive Territory clause to determine the geographical region to serve the goods and services of the business. The main purpose of this exclusive territory is that the place should be large to target the maximum number of customers and small enough to be efficient to serve all the people. In case, the franchise agreement lacks the territory clause, then there is a scope of business risk that can be overwhelming sometimes. Then there is the Protected Territory where the franchisor has set the location but they still allow the customers to get services and goods in the protected area from some other places. In the case of the company direct internet sales, you can find such a scenario. If your franchisor comes up with this plan, then you must ask the detailed data about current and potential exceptions that the territory will enjoy. Finally, there is an unprotected territory. In these cases, the franchisor doesn’t have any territorial protection to the franchisees. In case, you own a brick and mortar location, having a sister store can be beneficial sometimes. People will better recognize the business as there is brand recognition. Sometimes, the dropping of the revenue can be noticed when a competing

2. store opens in the same location. If your franchisor considers opening another store in the same location in order to maximize the profit, they may consider you to extend the store. Source​:​​ http://avextinct.com/guide-to-decide-the-franchise-territory-for-maximum-benefit/