Experts in Territory, Location & Field Force Optimisation

Franchise Network Review

What factors impact territory performance?

You may have been running your franchise for some time with many sold territories. Some of these may be more successful than others but it can be difficult to pinpoint exactly why. Are some franchisees less effective than others? Do they put in less effort? Or are they hampered to start with because there are insufficient customers in their territory compared to others?

Tech4T’s comprehensive franchise network review is designed to identify the factors influencing territory performance as well as key areas for business growth, both within individual territories and across the network as a whole.

Motivating your franchisees and benchmarking

Assessing territory performance on sales alone can be a mistake as this overlooks other significant influencing factors. The size of a territory, the number of target customers in it, the road network, the drive time for franchisee and customer to transact – these all help to put sales figures in perspective.

Franchise network review - graph to show the correlation between franchisee customer visits and sales

A franchise network review can assess franchisee customer and prospect visits, and analyse their correlation with franchisee sales. This type of analysis clearly identifies those franchisees that are not achieving sufficient sales in relation to the number of visits they make, enabling franchisors to support them with additional training.


Franchise territory spatial analysis

Often over or under utilisation of the territory network is hidden, resulting in inefficiencies and lost sales. We can undertake penetration analysis to identify areas of potential and also identify where, within any territory, the cost to serve a customer out of balance with the revenue obtained

During a franchise network review Tech4T will identify those franchisees in need of extra motivation and support to achieve targets. We give you:

  • A performance comparison between territories. This would incorporate the current revenue potential for each territory based on the demographic profile of the population or number and type of businesses to ensure a fair comparison
  • A demographic report for each territory or area, together with recommendations for improving performance
  • Market penetration within each territory or area
  • The revenue potential of each territory based on demographic makeup (not just on past purchases)
  • An assessment of customers in each territory –  how many, how much is each of them worth – plotted on maps in relation to franchisee bases. You’ll be able to see territory coverage at a glance and understand if there are under-serviced areas that your competitors could encroach upon

Franchise network showing sold territories

Example franchise network review showing all sold territories and the areas of unsold geography. Tech4T can quantify the value of all unsold areas and create salable territories.

Franchise Network Restructure

You may have sold one pilot territory or 101 over time. However many territories you have, and regardless of how they were originally created, Tech4T can undertake a franchise network review to:

  • Map your existing territory structure, identifying any gaps in coverage, customer crossover and anomalies in size
  • Advise which territories are not being worked to their potential. We assess customer locations and their distance from the franchise’s base location to determine how the franchisee is travelling to develop sales
  • Redesign your territory structure, without disturbing the boundaries of existing sold territories. This will give you the maximum number of viable territories in all unsold parts of the country
  • Assess the true value of resale territories. Often there is scope to increase sales above those achieved by the incumbent owner (particularly if the territory is very large), and hence the sale value of the territory

Call us to today to see how Tech4T can help you improve performance and maximise the profitability of your franchise network.

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