How can I be sure there’s demand for the franchise within my franchise territory?
Paul Boniface, Franchise Director of Ableworld the leading mobility retailer talks us through what you must do in order to assess whether or not your chosen franchise territory is suitable for the franchise you're interested in.
Check how your franchisor has drawn up their territory map. Have they used a reputable mapping company? Ableworld used Atlas Mapping to map the country into territories based on the actual performance of its existing franchise network.
Demographically, it may be important to have a certain number of a particular age group in the territory, such as young professionals or children. In the case of Ableworld, who sell products mainly to the elderly, each territory has a minimum number of people aged 60 and over.
Ask your franchisor how they will help create some initial demand for your franchise – for example, via a proven launch programme or by giving you some good leads.
At a higher level ask yourself if there is likely to be a general demand for the products and/or services you will be selling, and if that demand is likely to grow? Factors such as demographic trends, and political and economic policy can all influence demand now and in the future.
Check out how close your nearest co-franchisee will be and exactly what the rules are regarding the exclusive nature of the territory to ensure that demand in your area is not met by someone else.