Don't award territories that are too small or too large. You will regret it later!
Building a business is just like building a house; the foundations on which they are built provide a stable platform for growth and longevity.
It's no different with franchising. If there isn't enough opportunity in an area, that franchisee is already setup for failure, and that's bad for your brand!
So why would an overly-large territory be a problem?
If a territory is too large geographically, operating costs will be increased and the franchisee may not be able to service it within the margins of the business model.
And if a territory contains too much opportunity, the franchisee will not be able to meet demand in the area, limiting the revenue and growth of the network.
How do I work out what the right size is?
In short, it all comes down to understanding what the business has achieved to date, knowing what you want franchisees to achieve, and maths.
There's no one-size-fits-all as each business is unique, but we've already eluded that "the right size" has two components; geographical size and opportunity size and we'll cover these a little deeper in following topics.
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To get the right amount of opportunity in a territory, you're going to need to access the right data that defines how many potential customers are in an area.