How Franchisors Use Territory Mapping Platforms
In the world of franchising, territory mapping and management is crucial for ensuring both the growth of a franchise brand and the success of its franchisees. One of the most innovative tools franchisors use today to manage and define territories is mapping technology. With powerful mapping platforms, franchisors can make data-driven decisions that maximize growth potential while maintaining the integrity of their brand. In this blog, we’ll explore how franchisors use mapping platforms to effectively map out franchise territories.
Understanding Franchise Territories
A franchise territory refers to a geographic area within which a franchisee is granted the right to operate a franchised business. Defining these territories is essential to preventing conflicts between franchisees, ensuring fair competition, and creating a clear boundary for potential customers.
The process of mapping these areas must be strategic, taking into account various factors like population density, demographics, competition, and market potential. Be clear, be confident and don’t overthink it. The minimum metrics franchisors use are often set forth in their franchise disclosure document.
Why Mapping Platforms Are Crucial for Franchisors
Traditional methods of defining territories involved paper maps, Excel spreadsheets, and time-consuming manual calculations. However, mapping platforms have revolutionized the way franchisors approach territory planning. These tools offer several advantages:
Data Accuracy: Mapping platforms integrate current data, offering accurate demographic, economic, and geographic information. This data helps franchisors create territories that align with consumer behaviors and needs.
Efficiency: Using digital mapping tools, franchisors can quickly visualize and adjust territories, speeding up the entire process. It’s a significant leap from the old method of hand-drawing territory boundaries.
Customization: Mapping platforms allow franchisors to create customized territories based on specific factors that are important for their business model. For example, some might prioritize proximity to major roads, while others could focus on high-income areas.
Scalability: As a franchise grows, franchisors need to manage an increasing number of territories. Mapping platforms allow them to scale easily and visualize overlapping or adjacent areas, simplifying complex decision-making.
How Franchisors Use Mapping Platforms
Franchisors use mapping platforms in several key ways:
Defining Territories
When a new franchise opportunity arises, franchisors need to establish a territory that ensures the new location will have enough potential customers. Using a mapping platform, they can input specific criteria (e.g., population size, household income, or age group distribution) and use data layers to visualize ideal locations. The platform may also include information like competitor locations and customer density, enabling franchisors to avoid oversaturation in certain areas.
Ensuring Fair Market Distribution
It’s important to avoid franchisee overlap, where multiple franchisees might be vying for the same customer base. Mapping platforms help franchisors distribute territories fairly by showing the relative sizes of each territory, ensuring that no franchisee is too close to another. By adjusting boundaries dynamically, franchisors can maintain a healthy competitive environment and prevent disputes among franchisees.
Analyzing Market Potential
Mapping platforms are excellent for analyzing market potential. They give franchisors insights into demographic trends and buying behaviors in specific geographic locations. By layering various data sets, franchisors can pinpoint underserved areas where the brand could thrive. This allows them to prioritize expansion into areas with the highest potential for success.
How Zors Improves Territory Mapping
The Zors platform takes franchise territory mapping to the next level, by integrating mapping with compliance and data management - all in one tool. While other mapping platforms have been adapted for use by franchisors, Zors was built from the ground up for franchisors by franchise industry professionals. Zors offers advantages like:
Franchise Approval Tracking: Zors provides an easy way for your team to visualize franchise approval status. Your team can easily see its okay to sell in green states, not okay to sell in red states, and your registration is expiring soon in yellow states.
FDD Disclosure: Zors allows you to electronically disclose prospects instantly using our preferred electronic signature platform. This allows you to streamline process and disclose prospects sooner.
Flexible Territory Creation: Zors offers easy to use and flexible options for building a territory. You can also ask our AI chatbot to build a territory for you. Zors supports multiple territory types (like unit and area representative).
Report Building. Zors allows users to easily generate key reports. These reports cover various areas of sales and compliance, saving users time and making their team more efficient.
Territory Analysis. With Zors, you can quickly view data like the counties, zip codes, population, and households, along with other demographic and economic data.
Integrated CRM. The CRM is built on the mapping platform, allowing for visualization and efficiencies like no other franchise management platform.
AI Insights: Save time and maximize Zors capability with our integrated AI chatbot and other AI powered features.
Zors is jam packed with features to simplify sales, help with compliance tracking, and manage relationships.
Popular Franchise Territory Mapping Software
When it comes to technology, its always important to conduct due diligence and explore the competition. There are a lot of great softwares and services available. These include stand alone territory mapping software and stand alone CRM platforms.
To our knowledge, there are no other softwares available that integrate both franchise territory mapping software and CRM functionality.
However, there are softwares that provide robust CRM functionality, like Salesforce, Hubspot, Monday or Zoho. Likewise, there are many options when it comes to franchise territory software.
Pros of Using Zors Franchise Territory Software
The synergy of mapping, compliance, and management all in one software saves time, energy, and capital. Pros include:
Approval Tracking. Zors allows franchisors to easily visualize franchise approval. This seems like a simple task to the inexperienced; however, it is a real problem. Searching through a 50 state list can be cumbersome. Glancing at a map is simple.
FDD Disclosure. Franchisors must disclose the FDD to each prospect. The disclosure process can be managed in a variety of ways, but none are as quick as using Zors. With an integrated electronic signature process built into the map, any sales representative or staff can quickly and easily disclose a prospect.
Mapping. Zors makes franchise territory mapping easy, with a variety of user friendly tools. Franchisors have flexibility in creating territories and tracking the life cycle. You can even us the AI assistant to create a territory, analyze metrics, and provide a preview of demographic and economic factors.
Data Visualization. Population and business data can be volumnious, particularly when it comes to larger territories. Franchisees and business leads want to easily understand data. Zors instantly creates charts and graphs to make data visualization easy.
Report Building. Zors provide territory reports for easy attachment to any franchise agreement in doc format. Zors can also create sales reports and generate reports based off data imputed into the CRM. These features will be built out to support franchise compliance tracking, FDD renewals, and more.
Integrated CRM. Our software is built off a map, allowing franchisors to quickly link contacts, entities, and representatives all to a territory in a seamless manner.
Cons of Using Zors Franchise Territory Software
Zors is built for franchisors and will provide a total solution in the future, but it is still in its earlier stages of development. Therefore, there are some drawbacks. Cons include:
CRM Limitations. Zors does not offer the same robust functionality as more developed CRM platforms.
Data Limitations. Zors is built to quickly provide key data that most franchise brands rely on in a visually friendly and easy to use format. The tradeoff is that some more established brands may need more sophisticated data. Data limitations allows Zors to offer a flat-rate without regard to data pulled from third party sources. Zors plans to offer users the ability to import data, but does not presently. If you need to measure foot-traffic or similar metrics, the base Zors plans would be inadequate and would require us to work with you to find a customized solution.
