TERRITORY MANAGEMENT PROGRAMME
DESCRIPTION
Franchisee territory disputes or amendments can be a source of frustration for both franchisee and franchisor alike. On the one hand you don’t want to discourage a keen franchisee from building his business by taking on more territory, but on the other hand it is crucial to guard against giving away slices of the country to a franchisee who is unlikely to develop it as much as a keen new incomer. We guide you through the process, ensuring that the “new” territory is worked just as hard as the “old” territory, or a satisfactory agreement can be reached where there is a dispute regarding an existing territory.
OUTCOMES
- Clearer rules and guidelines for franchisees
- Improved performance within existing and, if applicable, new territories
- Improved relationships with franchisees
- Less time spent on disputes and disagreements
- Enhanced support team morale and motivation
- Improved performance of all franchisees
- Reduced franchisor support and admin costs
- Increased franchisor revenue and profit
- Increased capital asset value of franchisor’s business
PROCESS
Audit
A review of the existing territory allocation and demographics is carried out including:
- The core structure of territories used for any income projections
- The calculation of values for existing or additional territories
- Promises and representations made during recruitment
- The processes to maximise performance of franchisees within their existing territories
- The terms upon which additional territory is granted or refused
- The restrictions and obligations within the Operations Manual
- The restrictions and obligations within the Franchise Agreement
- The common problems experienced
Report
The final output of this process will be a set of criteria for appraising initial territory allocations and the performance that could or should be expected. Criteria will then be developed for the consideration of awarding additional territory, and the performance requirements to be placed on a franchisee once additional territory is granted. Strategies, methods to be used, documentation and procedures will be explained in detail, and presented together with specific rules and guidelines.
Implementation
Whilst the report provides clear guidance on implementing recommendations, we will provide support where required to ensure successful outcomes.
