How to choose a territory. Factors going into deciding.
How do you choose the BEST Yoga and Fitness Franchise territory? The BEST place to open your business to ensure success.
Well, my answer will hopefully help you but it may also frustrate you as well.
I can never stress this enough with potential franchisee prospects that this purchase must be made as a business decision. Yes, it can be a passionate endeavour and yes it can be an emotional impulse that initially sets you on the path to seeking a business but when it comes down to buying, make sure that it is a business decision and not one of just emotion and convenience.
Would it be great to have your business right next door to you house? Of course! And would it be great to just put up a sign and open your doors and have customers come in to purchase? Of course! But the reality is this. When it comes to having a location right next door well chances are you were exposed to this brand or franchise in your local community. That means that there is already that brand working in that area so that territory is most likely already sold. And if it isn’t, do you really want to be that close to another business with the same brand who are competing for the same clientele?
So yes, location matters in a big way but where you live shouldn’t be the deciding factor on that.
So then what should be a part of your decision making process when determining a territory to acquire?
First, you need to contact the franchisor to see what territories are available. These territories will have been divided by the franchisor for a reason and that reason is that corporate believes that a business can be set up in that area and be very successful.
Territories can be divided in many different ways but usually surrounding the idea of population. This can be divided by postal codes, a physical map with a drawing on it outlining your boarders, a certain kms distance between other territories, etc.
Once you have seen what is available, honestly, it comes down to your gut. As I mentioned, the Franchisor has already determined that all of these territories will be successful but only with the right person working it who is excited and believes in it. So, we could tell you that a territory is amazing and the BEST but if you don’t feel the same way, you will never be successful.
Take a drive through the areas if you are not familiar with them already and see what jumps out at you. I would give you more perimeters but that really depends on the types of business.
But please, don’t make your decision on whether it is right outside your door. Yes, commute time matters but you will have this business for a really long time. So many things could happen over the years such as you moving houses, new transit getting put in, you may end up hiring a full time manager and not have to go into the “office” every day, and so on. So make your decision based on an area that will be growing and successful for a long time and can bring you profitability.