White Collar Franchises and territories: So you are ditching corporate life and going out into a consulting franchise ……..
Published in Franchise Buyer Magazine, Vol3. #3, August 2016
Many white collar business people give the corporate life the flick (either voluntary or involuntary), and decide to put their skills to work in a small business for themselves. I personally did that aged 44, with 2 kids in private school etc etc ,and went into our own small consulting firm – a fairly high risk period of my life!
Whilst this article is not about me, I did end up being a Director of the Institute of Management Consulting (IMC) for 6 years, so do have some idea of the challenges before you. Taking on a white collar franchise can be the solution between going alone, with all the risk as an individual consultant, and partnering with a known concept, and using the systems and processes already established to your benefit.
... Do they have a proper site selection process?
Published in Franchise Asia Juanary 2015
How do large multi-nationals decide where they spend their money on new sites? Whether they are in the oil industry, the QSR’s or any other very large chain of retail stores, I hope there is some logic in their site selection process.
Variability of information
The starting point for the decision of where to invest in retail should be available data. In an ideal situation, this would be a Census of population and housing, with data down to small areas such as every 100 households, traffic counts on the main roads, some form of pedestrian counts, business and employment information and probabaly the attractiveness of the surrounding / adjoining areas (often called the Generator score).
Article was published on Expert Advice page, Business Franchise Australia & New Zealand Magazine Sep/Oct 2013 and Franchise Asia October 2015
Creating a Territory Plan or having Preferred Marketing Areas is a desire of most franchise systems, however evolving into a good system can be a nightmare.
Most Territory Planning exercises we handle begin from the “Beer and Pizza” approach, and in many cases have evolved at people’s discretion. The “Beer and Pizza” approach is normally when a group of management (and some franchisees), converge around a map on a Boardroom table with beer, red wine, a couple of pizzas and a black crayon, and some good ideas! Inevitably it is built around where existing stores are, or where dominant Franchisees want to have as their exclusive territory. The downside is uneven opportunity in territories, overlaps and spaces in between, which we call no man’s land.
Published in Franchise Asia 2015
I am surprised by how many businesses decide to opt for a franchising model with no plan for how to properly achieve it. I see businesses that have tried to do it themselves, engaged a lawyer as a consultant, or just tried a shotgun approach and fired off volleys whenever they see a problem fail miserably.
Let’s start with a franchise consultant who can take an overview of the development of the franchise.
Franchise consultants are specialists who act like conductors of an orchestra, Their job is bring in (and out) the various instruments as and when required. In our case I say our business is the first violin – needed for strategic network planning, site selection policies and territory planning – and then we pass our work back to the conductor and the client to move to the next steps.
Published in Business Franchise Australia and New Zealand
Many businesses we deal with are structured at marketing to other businesses (Business to Business - B2B), and therefore the logic of how to establish a territory that is normally used when you sell to consumers (Business to Consumer - B2C) goes out the window.
Many B2B businesses sell a product, the likes of printing companies such as SNAP and KwikKopy, and many sell a service. The service may be couriers such as Fastway, changing office light bulbs, or providing business loans or business insurance. Both products-based and serviced-based franchises normally need to give a territory, especially if there is central ordering, and jobs are allocated to franchisees. You want to be sure you receive all the jobs you are entitled to!
The core thinking in this type of business is we want to know where the customers – other businesses are, rather than where people live.
Should a franchise that operates out of a “bricks and mortar” store give territories or not? That is one of the biggest questions in Franchising today.
There are many opinions, and companies do it differently depending on their size, brand awareness, level of investment required by the Franchisee and basically, the view of the CEO or his franchise advisors.
The Franchisor’s views are normally around the line of let’s keep it to a minimum as it gives us more flexibility for the future. The Franchisees view is normally around thinking of it as an exclusion zone and therefore a guarantee that the Franchisor (or his successor) cannot introduce another store into the area.
Published in the Business Franchisor 2011
Anyone who watched John Cleese in Faulty Towers will remember his great lines about ‘Don’t bring up the war!’ The same can be said for territories, preferred marketing areas, exclusion zones, or whatever name you chose to give them. If you are a franchisor, may I suggest you think very carefully about what you agree to right from the start. As, like many things, promises once given are VERY hard to get back!
What's in a name?
The first point I suggest you think about is, “What am I giving a franchisee in terms of a spatial footprint and what should it be called?”
The four most common things that a franchisor gives to a franchisee are:
Article published in Franchising Magazine Jul/Aug 2014 VOL.27/NO.4
Peter Buckingham is the Managing Director of Spectrum Analysis Australia. He is a certified Management Consultant, and a Fellow of the FCA and IMC.