The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Close
How are franchise territories defined?
Franchisors define trading territories using a variety of criteria, but let’s look first at how they should be calculated.An established business will be able to assess its historical performance to work out what its market share has been, given an area containing a certain number of customers for the product or service. Bear in mind such customers could be defined simply by total population, population of a certain age profile, number of owner-occupied homes of a certain type, total number of small businesses, number of a particular type of business, or even number of households with gardens, young children or pets.Once the business has worked out how many potential customers are needed to enable a franchisee to meet its targets, it knows how many potential territories there are in the country.It’s then a question of defining the boundaries of these territories, and this is often best done by using postcodes, as it is possible to acquire data that outlines how many of a certain type of customer exists in a particular postcode. Add together enough postcodes to get the desired number in a territory, then repeat the exercise however many times is necessary to map out the entire country, though note that circumstances change and the method should be kept under regular review.Less sophisticated franchisors have been known to simply rely on county boundaries, local authority regions or Yellow Pages areas, but these tend to produce areas of unequal potential.
You might also be interested in

Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more

Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more

Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more

Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities

Start your own Sojubar franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Sojubar for further information!

Start your own UK Business Mentoring Group franchise
Yes
Find Out More£90,000

Request Free Information
Send a free enquiry to UK Business Mentoring Group for further information!

Start your own Fun Fest for Children franchise
Yes
Find Out MoreFrom £30,000

Request Free Information
Send a free enquiry to Fun Fest for Children for further information!

Start your own The Fat Pizza franchise
Yes
Find Out More£550,000

Request Free Information
Send a free enquiry to The Fat Pizza for further information!

Start your own Numi Scan franchise
Yes
Find Out MoreReturn of initial investment and an...

Request Free Information
Send a free enquiry to Numi Scan for further information!
Companies to Consider

Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
50 franchise brands with training programmes in 2025
Added 4 months ago | 2 min read
-
Franchise funding: How to beat the banks
Added 3 days ago | 2 min read
-
Franchise agreements: How to navigate territory rights
Added 3 weeks ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Under 50k
If you have experience and more to invest
Click here -
Over 50k
If budget is not an issue, then don't miss these
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
COPYRIGHT © 2025 ARTICHOKE MEDIA LTD Registered in England and Wales No 14769147 Registered Office Address: Jubilee House, 92 Lincoln Road, Peterborough, PE1 2SN
With the publication of Getting Started in Franchising, What-Franchise.com is not offering legal, financial or any other professional advice or endorsements. Readers are encouraged to seek advice from professionals in specialised fields before acting on any information published herein. The views and opinions expressed in Getting Started in Franchising are those of the author(s) and do not necessarily reflect the views and opinions of What-Franchise.com members or staff.
What Franchise Newsletter
Keep up to date with all the industry news