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Opening A Franchise – Essential Advice On Territory and Location

A final aspect of the franchise agreement to consider is the importance of your territory.  The territory is literally the geographical area within which you will operate your business.

Defining your exclusive territory ensures that other franchisees within your network won’t compete with you for your local business as they are bound by their own franchise agreement.

Franchisors designate specific territories which normally fall within a postcoded area or can be based on population levels depending on the type of franchise and the area being considered by the franchisee.

At Redstones, our territories are unique compared to other lettings franchisors as we have explained below. Each area has been exclusively created to provide equally profitable revenue opportunities for our franchisees. Furthermore, all of them offer a good balance of property types, combined with a broad range of demographic profiles.

Once you have agreed your exclusive territory with the franchisor, the next step is to choose the location you will operate your business from.

Location, location, location

Redstones’ unique business model allows for an office based location away from the high street. For franchisees who are centrally based with the potential for high footfall, we provide the option to run the business from high street premises too.

All franchisees considering a high street location should ask consider the following before making the final selection on their premises:-

  • How complete is the data on which the franchisor has created their territory map in terms of population and potential market?  At Redstones, our franchisees’ territories are bigger than those on offer with other lettings franchises and were designed exclusively by franchise mapping specialists. Each one covers approximately 100,000 homes and encompasses a total population of around 250,000.
  • Who will buy your services and products? Where will your customers come from? Will your new business be able to generate enough sales to make a profit?
  • Is the chosen location easily accessible for local clients if they need to come into the office?
  • What is the footfall like in the area around the site? How many pedestrians pass the location each day?  What demographic do they fall into?  Is it busier at certain times of the day?  It is worth spending a day or two during the week observing the passing traffic – including pedestrians – around the site and repeating the exercise at weekends.
  • What is the local competition like?  How many similar businesses operate nearby? How busy do they appear to be?  Have any opened – or closed – in the previous year?
  • Will the premises require extensive refurbishment or redecoration or is it one that can be moved into fairly quickly?
  • How will it meet the criteria for a successful business?

For a new franchisee we understand that choosing a suitable location for your premises can be overwhelming which is why we work closely with you to help you to make the choice which will maximise your revenue potential.

To explore more about what it means to be a Redstones franchisee and why our territories are unique please contact us – we will be happy to answer any questions you may have.