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Space for Franchising: Marking Your Territory

by clintshaff

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So you have decided to throw your hat into the wonderful crazy world of business franchising. Companies the world over give other businesspeople a chance to run a branch of their favorite brand and empower them with ways to earn a living. America itself is replete with stories of how down-and-out people managed to bounce back as successful franchisees.

One important element of franchising is that you must know where to set up. This is known as establishing a franchise territory. Every franchisee needs to be familiar with the area where s/he aims to set up a shop. However, s/he must also be aware of fellow franchisees and competitors in the same area. When approaching a franchisor with a business plan for an outlet, it’s important to know the lay of the land.


Territories in franchising have no exact definitions. Some can be marked by zip code, population density, and other factors. A credible franchisor will keep track of all franchisees within a large area—a city, for instance—and have a map of the territories they occupy. With sufficient market research, aspiring franchisees can then find which open territories are ready for establishment.


Sometimes, franchisors are gracious enough to grant exclusive territorial rights to just one franchisee. If the area is quite big, it can motivate the franchisee to draw in more sales. Caution is also important here; a franchisor might allow another franchisee to set up in an adjacent territory. Such a scenario can affect the first franchisee’s customer exclusivity. The company can still refuse nearby franchise applications though if the first franchisee is capable of attracting more customers.


A franchisee may be given a “restricted territory” to set up in. Under this arrangement, the franchisee’s marketing operations will only be limited to those within the borders. This is to prevent the possibility of getting customers from a neighboring territory.

Location is very crucial in establishing a franchise business. Likewise, working with a reliable franchisor is essential to receive proper guidance and learn the tactics suitable for your territory. Learn more about franchising by visiting

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