How to define territories with the same market potential
Where geographic territories or preferred marketing areas around an anchor point are necessary for a network, the science and logic to define those territories must be capable of withstanding scrutiny and providing adequate potential to support an operation.
The days of franchisors poring over maps and drawing arbitrary lines are gone, and this practise today will inevitably to lead to litigation by franchisees.
Through understanding the drivers of a business, and by assessing what should be a suitable trade area, can a formula for the total number of territories (and franchises) be developed (rather than a best guesstimate of what a market might sustain).
Territory planning is all about using facts and data to give each territory similar opportunity to sustain a franchisee. Regardless of whether it is a B2C, B2B or a MIX type business, the right use of the right data will make better territory planning decisions possible.