Choosing a Location: The Importance of Exclusivity and Demographic Research

by Joan Trinka

You’ve heard it before—location, location, location. Whether you are interested in a brick-and-mortar franchise or a home-based business, among the most important things to bear in mind is the viability of the location you are considering. Two of the most influential factors in your likelihood for success are the exclusivity and demographic makeup of the market you will be serving.

Any good franchisor will protect your territory from competition within the system. Whether that means a set geographic area that will be free of other locations or a system of tracking clients by zip code, exclusive rights to your purchased area/clientele are a huge part of what you’re paying for! However, you’re also buying into a business that you hope will have established credibility, power in numbers and a wealth of experience.

Our company, Bark Busters Home Dog Training (a home-based dog training franchise with 240+ territories in 40 states), walks this line by encouraging owners to work with, not against, nearby locations—they can benefit from positive community recognition of nearby franchises, team up for advertising and marketing efforts, and take advantage of mentoring relationships. This type of productive collaboration strengthens all the owners involved, and because we value each owner’s individual success, we have very clear policies and systems in place to protect the integrity of each owner’s exclusive territory.

How a company comes to a fair definition of exclusivity should depend greatly on complex demographic research. It is not enough for a franchise system to tell you the population of your proposed territory or the per capita income; a smart franchise buyer will insist on demographics detailed to the specific business model and service or product being sold.

For example, a multiple-city market full of high-income young professionals sounds pretty promising—but not if you were trying to open a senior home care services franchise. On the flip side, if a company can show you demographic research that proves there is a market to support your business, even if it is in a smaller geographic area or close to another owner, it could be a wise buy.

At Bark Busters, we evaluate every territory based on not just the number of people and their disposable income, but on the number of dogs present. We also pull a list of vet clinics—our franchise owners’ number one source of referrals. We have a thorough knowledge of what demographics it takes to help make our particular franchise successful, and we make sure we set our owners up for success.

Whatever kind of business you are looking into, take time to dig deep into the information provided about the territory you are being offered. Think outside the box, beyond just the basic demographics of population, income levels or street traffic: Ask your potential franchisor for partnership opportunities within and outside the company and demographic breakdowns specific to your targeted consumers. The exclusivity of your territory is a large part of what you’re paying for—make sure it’s the right location for your business to be successful.

Joan Trinka
Director of Development
Bark Busters USA

Learn more about Bark Busters at topfranchises.franchisebusinessreview.com.

Log in to leave a comment. If you're not an FBR member yet, click here.
Email:
Password:
	Keep me logged in
Comment:

You must register to post a comment. Registration is quick & easy. If you are already an FBR member, click here.
First Name:
Last Name:
Email:
Password:
Confirm Password:
Receive updates, notifications and special offers from Franchise Business Review
Comment:
Verification:	[ New Image ]