Master Territory Maps

One of the primary goals for expanding franchisors is to maximize the value of the map: carve up inbound or outbound territories with precision, maximizing site density. More sites = more fees = more profits. 

But not all franchisees will be happy with more sites. More sites increases the prospect of cannibalization, where two sites compete for the same buyers. Franchisees will want some sort of insurance policy that franchisor expansion plans will not jeopardize their buyer base, and generally seek protected catchments as part of this insurance policy (read more here). 

How does a franchisor negotiate this tension between franchisee interests and site expansion? Master territory maps are very useful in this context. 

Master territory maps lay out a catchment strategy for an entire region, providing a transparent expansion plan for both franchisor and franchisee to reference in assessing the value of a new site. 

These maps are a compilation of catchments, either inbound or outbound, that illustrate the general plan for subdividing larger geographies into individual sites or territories - this applies to both inbound and outbound models. This context will assist in moderating territory negotiations, maximizing both profits and security on both sides of the transaction. 

But maps alone won’t add value - the underlying datasets must be selected with care. Census data is widely available, but full of challenges. Globally standardized gridded datasets like those offered in Population Explorer provide a high resolution, extremely accurate alternative. 

Interested in learning more? Our world-class GIS technicians provide on-demand territory management services for brands all over the globe. Reach out here for a free consultation!