When a franchise business fulfils its initial growth plans and starts to explore the next phase in its development, they should be widely encouraged to explore the benefits with territory mapping. Territory mapping is a process which identifies potential new areas that can be targeted for opening new franchise locations. It is an important step as it provides clarity to all existing franchise locations and clearly maps out the territories available for new franchisees.
Territory mapping provides a franchisor with the ability to recognise which areas hold the most business potential. This enables them to recognise where to allocate sufficient time and resources to maximise opportunities and increase their franchise network. Each individual franchisee will know exactly where they stand and have exclusive ownership to their defined territory which nobody else can impact.
Of course, it sounds a simple process, but it is far more in depth than just scanning a map of the UK and pinpointing areas of interest. There needs to be accurate research to establish clear boundaries and to understand where the most profitable areas will be. There are several steps that should be taken:
- Data collection – identify territories based on demographics, resources, customers and competition.
- Analysis – a full analysis of all data collected which culminates in a shortlist of potentials being drawn up.
- Mapping – when locations have been identified a process of digital mapping should be undertaken so that accurate boundaries for territories can be finalised.
- New territories – when new territories are established promoting can begin to target new franchisees.
- Ongoing monitoring – there should be a progress of regular monitoring to make sure all available territories are accurate and if changes need to be made to location boundaries.
Using technology to help with territory mapping will be beneficial. Deploying geographical map solutions alongside demographic reports and market data will help to streamline the entire process.
Once a franchise owner has completed the territory mapping process there are some recommended steps for them to take to ensure they will be fully aligned with any future franchisee:
- Make sure both parties know exactly what is happening, correct expectations are set and there are always positive communications.
- Adopt a flexible approach, it might be necessary to adjust and modify a territory at any given stage. Again, all parties should have full transparency on this.
- It needs to be a partnership approach so full co-operation and collaboration is a must.
In summary territory mapping is an excellent step for a growing franchise. By following some simple guidelines there are some excellent growth potentials.
If you have any questions in regard to territory mapping or in fact any aspect of franchising please call our team on 01993 706403 or e-mail hello@ngifranchisefunding.co.uk.