So far, we have seen that franchises give you operational security, with an established brand and training in best practices, and legal certainty with the terms of the Franchise Offer Circular (COF),
Now let's talk about market safety, the most important of all.
Your rights begin and end within the area named after you.
Formerly, this right was called the radius clause, since in the absence of better forms, franchises specified an “operating radius” of X kilometers.
So life went on, until geomarketing methods were incorporated and, with them, there was an improvement in market metrics.
The lightning rule had serious problems, in one place the lightning could add up to 10 thousand people, in another it could exceed 30 thousand.
Those who fell in the least populated region struggled to sell, those who fell in the denser region sold a lot, but the franchise stopped opening new units there.
A general disaster
This evolution has not yet reached all franchising networks, and most of them still do not have Geomarketing resources and work with metrics that are almost as generic as the radius.
Boundaries of neighborhoods and municipalities are very common in these cases.
60 units per franking brand
Dividing the +180 thousand franchise units by approximately 3 thousand franking brands, we reached this average.
But, if we consider the top largest chains, with thousands of units each, we see that the lower floor of the franchises will be made up of networks with 60 units or less.
Historically, these networks were not the target of Geomarketing companies, which offer complicated solutions for amounts above their payment capacity.
Until Mapfry came to the market with its simple and accessible approach, where it is possible to create an account and carry out drawings of territories without paying anything.
Nobody else has an excuse not to use Geomarketing in their territory designs.
References
-----------------
Other chapters:
- Presentation
- From entrepreneur to entrepreneur
- Reason for being of franchises
- Law and Order
- Where to start and how far you can go
- Territories in franchises
- Benefits of Geomarketing in the design of territories
- Critical Analysis of Expanding a Network
- Each one in its own square