Economic and Demographic Data in Franchise Territory Mapping
Franchisors often build franchise territories and select locations based on economic and demographic information, but they may not fully appreciate the source or reliability of their data. Franchise territory mapping softwares often utilize U.S. Census Bureau data to provide the most reliable information to franchisors. However, private data sources may be necessary for trends and more granular data.
The ZORS franchise territory mapping software utilizes U.S. Census Bureau as its key data source in helping franchisors preview, build, and maintain franchise territories. This also allows us to provide unlimited data to our users without increasing their fees. We also identify the source of our data, allowing franchisors and franchisees to determine if they are using the most-current information.
The U.S. Census Bureau
The U.S. Census Bureau collects economic and demographic data through surveys, censuses, and administrative records, then estimates trends using statistical modeling.
Data Collection Methods
Decennial Census (Every 10 Years) – A full count of the U.S. population, collecting basic demographic data (age, race, housing, etc.).
American Community Survey (ACS) (Ongoing, Annual) – A rolling survey sampling about 3.5 million households per year, providing detailed economic, housing, and demographic estimates.
Economic Surveys (Monthly, Quarterly, Annual) – Includes Census of Businesses, Current Population Survey (CPS) (used for unemployment rates), and Consumer Expenditure Surveys.
Administrative Data – Uses government sources like IRS tax returns, Social Security records, and Medicaid/Medicare data to supplement estimates.
2. Estimation & Modeling
Since surveys do not capture every household or business, the Census Bureau uses statistical weighting, sampling techniques, and imputation to estimate data for the entire population.
ACS 1-Year vs. 5-Year Estimates – 1-year estimates are timely but less precise for small areas, while 5-year estimates are more reliable for smaller geographies.
Population Projections – Uses birth, death, and migration trends to estimate future population changes.
How Census Bureau Data Differs from Private Sources
Scope & Purpose
Census Bureau: Designed for public policy, federal funding, and research; focuses on accuracy and consistency over time.
Private Sources (e.g., Nielsen, Zillow, Esri, Experian): Primarily for business, marketing, or commercial insights; may prioritize speed over methodological rigor.
2. Methodology Differences
The Census Bureau primarily collects data through surveys and government records, ensuring a statistically rigorous approach with broad nationwide coverage, including small geographic areas. Private data providers, on the other hand, often rely on big data sources like credit card transactions, social media activity, and web scraping, which can be more immediate but less methodologically transparent. While the Census Bureau updates its data at intervals ranging from annually to every ten years, private sources typically refresh their datasets in real-time or monthly, making them more useful for tracking short-term trends.
In terms of accuracy and reliability, Census Bureau data is peer-reviewed and designed for policy and research applications, ensuring a high level of consistency over time. Private data, however, may be biased due to proprietary modeling techniques and a focus on market-driven insights rather than statistical rigor. Additionally, while the Census Bureau’s datasets are widely used for infrastructure planning, public policy, and research, private sources tend to be more relevant for marketing, real estate, and consumer behavior analysis. Ultimately, the trade-off is between the long-term reliability of Census Bureau data and the real-time responsiveness of private-sector data providers.
3. Real-Time Data vs. Long-Term Trends
Private sources often update more frequently (e.g., monthly housing prices, credit card spending patterns).
Census Bureau data is more structured for historical analysis and policymaking but lags in real-time insights.
Data Available from U.S. Census Bureau
The U.S. Census Bureau provides a wide range of demographic, economic, social, and geographic data collected through censuses and surveys. Here’s an overview of the main types of data available:
1. Demographic Data
Collected through: Decennial Census, American Community Survey (ACS), Current Population Survey (CPS)
Population counts – Total number of people in the U.S., states, counties, and cities.
Age and sex distribution – Breakdowns of different age groups and gender demographics.
Race and ethnicity – Data on racial and ethnic composition (e.g., Hispanic, Black, Asian populations).
Household composition – Family structure, including married couples, single-parent households, and multi-generational homes.
Migration and mobility – Where people move to and from, including domestic and international migration patterns.
2. Economic Data
Collected through: Economic Census, ACS, CPS, Small Business Pulse Survey
Employment and unemployment – Labor force participation, job industries, and unemployment rates.
Income and poverty levels – Median household income, income inequality, and poverty rates.
Business and industry statistics – Number of businesses, revenue, and employment across industries.
Consumer spending and housing costs – Rent, mortgage payments, utility expenses, and cost-of-living data.
Government spending and revenues – Public sector finances, including federal, state, and local government revenue and expenditures.
3. Housing Data
Collected through: ACS, Decennial Census, Housing Vacancy Survey
Homeownership vs. renting – Percentage of owner-occupied vs. renter-occupied housing units.
Housing affordability – Rent and mortgage burdens relative to income.
Building types and age of homes – Single-family homes, multi-unit buildings, mobile homes, and age of housing stock.
Vacancy rates – Available vs. occupied housing units.
4. Social Data
Collected through: ACS, CPS, National Crime Victimization Survey (NCVS)
Education levels – High school and college graduation rates, literacy statistics.
Health insurance coverage – Percentage of the population covered by private vs. public insurance.
Disability statistics – Data on people with disabilities, including employment and healthcare access.
Crime and public safety – Reports on victimization, law enforcement data, and public safety trends.
5. Geographic and Mapping Data
Collected through: TIGER/Line Shapefiles, Census Gazetteer Files, ZIP Code Tabulation Areas (ZCTAs)
Geographic boundaries – Official maps of states, counties, cities, census tracts, and ZIP Code Tabulation Areas (ZCTAs).
Urban vs. rural areas – Designations of urbanized areas and rural regions.
Commute and transportation patterns – Data on how people travel to work (car, public transit, walking, etc.).
6. Business and Economic Development Data
Collected through: Economic Census, County Business Patterns, Business Formation Statistics (BFS)
New business formation – Start-up trends and entrepreneurship rates.
Industry-specific data – Performance of sectors like retail, healthcare, and technology.
Small business and minority-owned business statistics – Ownership demographics and business success rates.
7. Special Reports and Projections
Collected through: Population Projections, Special Census Reports
Future population estimates – Projections based on birth rates, death rates, and migration patterns.
Disaster and emergency response data – Population impact reports for hurricanes, wildfires, and other disasters.
Franchise Territory Mapping Software Data
As outlined above, there is a lot of data available from the U.S. Census Bureau. The ZORS franchise territory mapping software is constantly evolving and adding new data based on customer demand. Our goal is to find the right balance where the user experience is not negatively effected by data overload. For that reason, our core software focuses on key indicators and report building based on this data.
However, we are able to add custom data sets to address individual needs. Explore the ZORS franchise territory mapping and CRM platform features today.
Data Visualization
It is often easier for franchisors and prospective franchisees to visualize data. ZORS has taken several key metrics and programmed the territory mapping platform to instantly generate charts and graphs as you build a territory. These charts and graphs can be analyzed in a preview format and downloaded. Once a territory is built, the charts and graphs - along with their underlying data - is saved with the territory throughout its life cycle.
Charts and Graphs
ZORS automatically generates dynamic charts and graphs based on U.S. Census Data applicable to the franchise territory boundaries you develop.
Economic and Demographic Territory Report Building
ZORS allows franchisors and franchisees to visualize data with charts and graphs, while also providing tables with raw data by zip code or census tract or county level (depending on the source, type and selection methods). This information is populated automatically, and users can extract in report form or chart-by-chart.
Users can generate a territory report for purposes of inclusion into the franchise agreement or they can generate a sales report with pre-populated charts and graphs to help franchise sales teams.
