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Territory Planning
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Territory planning is closely related to market research. Your market research will help establish where you target your franchises, how many you plan to start, and how you hope to run
them.
Territory will be part of your franchise agreement. It determines not only where you want to have your business locations, but ensures that you don’t have two competing franchisees working in close proximity to one another. In other words, each franchisee should have his or her own territory, and that territory must be large enough to be profitable.
You will have to decide how wide you want an individual franchisee’s territory to be. Note that you are included in the territory clause in your agreement: you may not enter a franchisee’s territory and sell your own products. They may be yours, but your territory agreement is designed to protect the franchisee’s rights and allow his/her business to be profitable. It protects you, as well: it means that a rogue franchisee can’t just wander into someone else’s area and clog the market with your products, resulting in a possible price war. |
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There are three keys to territory planning: |
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1. Begin your franchising efforts by targeting areas that seem profitable according to your market research.
2. Do not make your territories too big.
3. Do not make your territories too small.
The first one is a bit of a no-brainer: obviously, you’re going to try to settle in areas that show the greatest potential for growth. The second two, though, constitute a delicate balance that can be difficult to achieve. If your territory is too big, you’re limiting yourself from opening future franchises if the area proves profitable. Remember, once the franchise agreement is signed, it’s binding until its expiration. Whatever territory you decide on now will have to hold until your set time runs out.
On the other hand, making your franchise territories too small is discouraging to potential franchisees, who will see a small territory as a sign that you intend to move in on the area should their business be successful. It can also be detrimental to your own profits and discourage other franchisees from purchasing your franchise in the future.
Only you can decide how many territories you hope to cover and what size they should be. Give the matter careful thought and consideration before you make any final decisions! |
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How To Franchise Your Business Info Guide |
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Claim your FREE franchising consultation now
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Request a FREE 'Opportunity Analysis' with one of our experienced
business franchise consultants. During the analysis Franchise My Business will uncover the opportunities that exist within your business.
The detailed report will contain: |
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| Suitability for franchising |
| What you can charge for your franchise |
| The process explained |
| List changes needed to the business to enable successful franchising |
| Market analysis |
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No sales pitch - just good honest advice |
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Call 0845 020 4368 to book your free consultation |
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Our Fees
As you have seen franchising your business will generate a lot of additional cash. This option is also the quickest way to build a very profitable and high value business.
HMA Business Growth Solutions will complete 95% of the work involved in franchising the business. We will cover all legal costs (approx £5K), provide all the marketing material needed and provide a complete plan to recruit franchisees. We will also provide ongoing support and changes to the franchise system as required for a period of three years.
* £9995 + vat payable in 4 monthly payments (£2498.25 + VAT per
month).
This is a heavily discounted rate - we prefer to make the mass of
our fee by linking our fees to your success.
In addition we will: |
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| Advertise the franchise |
| Qualify the potential franchisees |
| Meet all potential franchisees |
| Any franchisees that we feel are suitable will be invited to
meet with you. |
| Close the sale and setup all legal contracts. |
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In return for handling this process and incurring many costs, our
fee will be 20% of the franchise fee. This fee will only be
payable on success.
Isn’t that refreshing - A consultancy company that links payment
to performance.
The exciting part of our service is that it won't cost you a
fortune. We mainly work by charging a small project fee and
accepting a minor percentage of the increased profits that we
create for you. |
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| We like to share in the extra profits we make for you. |
| This makes us highly motivated to achieve major increases in
profit. |
| Plus—we guarantee that your franchise will be a success or
we’ll work for you for absolutely nothing until it is or we will
refund your investment.
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| We are not like any other consultancy company you've ever come across. |
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Remember - if we can’t increase your profits dramatically
We’ll work for you for nothing until we do.
The Business Franchising Specialists
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