Many Franchisors are rapidly expanding internationally with their well-established US based systems, and need good information to base their decisions on. They have invested in having rules for their site selection and having their territories done properly for their US networks, but may have been “led” into a different approach overseas.
This should not and does not need to happen!
International coverage
All countries which I shall broadly describe as “first world” and “second world” countries, inevitably have mapping and demographic information that can be used in understanding the markets you are leaping into. Many countries such as Canada, Mexico all the countries in the EU and most across Asia have mapping and good information for setting up territories or general demographic knowledge.
There are companies internationally who can set up the mapping so you can have a clear picture of what is going on. This allows you to then establish rules for things like distances between sites, where are the major competitors, formation of territories (different sizes in different markets), and having a very good understanding of how many people live or work in any specific area.
The process
We recommend using a GIS (Geographic Information System) to download the relevant data for the country in question and combining the rules that have been established with the mapping and the data to map the sites or the territories required.
Competitors can also be mapped such as in a recent job we had to map for a client 1,500 competitors across the UK, as they wanted to see where their 2 main competitor’s sites are compared to theirs, and use that in the process of territory formation.
Once the mapping has been set up, you can then use a simple, commercial online system to upload the maps and files into. This allows you to then view the data / territories or sites anywhere across the world via the web. The ongoing licence of this type of worldwide interface is around $US200 pm to make your data visible in ways that best suit your business operations, including giving various levels of access to different people and potential franchisees.
Other companies may have different solutions; however this has worked in cutting hundreds of territories across the Europe, to creating 3 territories in Botswana recently.
The advantages
Jade Winter, the CEO of Studio Pilates (in Australia) says “Having our studios and territories available worldwide has given us huge impetus in offering our services into the US, England and China. I now feel confident I can give a territory based on realistic size and population in all the countries I want to take our franchise to.”
If you are undertaking international expansion, being able to map your sites and competitors, and build territories so you can say they offer similar potential can now be done internationally. If you use this as a sales tool to secure master franchises or individual franchisees, would you not want to be seen as offering a similar level of security or understanding in the territories you offer at home?
Everyone will tell you it is “different” in their country, but having a standard approach to information, site selection and territory planning should give your System an advantage over the less informed competition.
Summary
If you are heading international, do not be misled to think you cannot find or afford to have a reliable system to show mapping, information and territories, so you have control over the international expansion of your brand.
Peter Buckingham is the Managing Director of Spectrum Analysis Australia Pty Ltd, a demographic, mapping, franchise network planning and statistical analysis consultancy. Peter is the Go To person as to how and where to establish sites and territories in Australia and now worldwide. To contact Peter email peterb@spectrumanalysis.com.au or visit www.spectrumanalysis.com.au