pet store franchises

The Importance of Territories with Your Grooming Franchise

When buying a franchise, it is important to look at every variable to make sure it is right for you. While looking at aspects such as the branding power of the company, their tools and much more are important, you should also be sure to look at the territories for the grooming franchise. This is an important aspect of the franchise purchase and something you should know more about.

 

Why is a Territory Important to Your Grooming Franchise?

Territories are designed to make sure there are no franchises competing with one another within too close of an area. There are different ways that the territory can be constructed, typically by population or zip codes. While most franchises offer territories they are not always protected, which can make it harder for your grooming franchise to succeed.

Are Bigger Territories Better?

Many people often assume that a larger territory means that they have more protection and will get more revenue. The problem with this assumption is that there are benefits and drawbacks for both large and small territories. Let’s take a look:

 

Large Territories

Benefits:

  • More potential for growth
  • Less chance for competing franchises to take your business.

Drawbacks:

  • Takes more resources to develop large territories
  • You may be too far away from certain customers to make it feasible for them to visit your location.

 

Small Territories

Benefits:

  • Easier to reach your demographic
  • Better targeted for the community

 

Drawbacks:

  • Growth is harder
  • Other franchises on the border of your territory can take your customers

 

What to Look for With Your Territory

When looking at the grooming franchise agreement, there are several things you will want to look at with the territory. The first thing you will want to establish is whether this is an exclusive or restrictive territory. You will also want to understand the exact size and scope of the territory. Make sure this is clearly defined so there are no issues down the road.

Take the time to examine the territory and have your legal counsel look this over as well. You want to make sure that all issues and negotiations are handled before you sign the franchise agreement. Once this is signed, there is very little that can be done to protect you, so make sure this is something you spend extra time when researching your grooming franchise.