A trade area is the geographic region surrounding a location from which most customers are drawn. Trade areas are shaped by travel patterns, traffic flow, demographics and local competition. They can be defined by radius, drive time, isochrones or custom mapping models.
Trade areas reflect real consumer behavior and help franchisors understand where customers come from and how far they travel.
Understanding a trade area helps franchisors:
forecast unit performance
evaluate real estate sites
structure territories
identify primary and secondary market zones
assess competitive threats
plan targeted marketing campaigns
Trade area accuracy is essential in both territory mapping and site selection.
Trade areas support:
franchise development
market research
territory evaluation
advertising radius planning
location feasibility studies
Different concepts have different trade area sizes based on customer habits and visit frequency.
Drive Time Map
Isochrone
Franchise Territory
Franchise Territory Mapping
Point of Interest Mapping
Last updated: November 26, 2025
