Franchise Opportunities Blog
Finding the Right Formula for Multi-Unit Territory Sizes
Some franchisees prefer single territories. Others desire entire metro areas. Offering a multi-unit program supports all goals.
Offering multi-unit territories enables a franchisor to tailor the best option for every interested buyer. It was a lesson several years in the making.
When Handyman Matters President Andy Bell and Vice President of Operations Mark Douglass began franchising in 2001, they allowed buyers to purchase territory sizes of 250,000 households.
“This wasn’t based on any scientific research we’d conducted,” Douglass confesses. “It was simply a figure we selected because it seemed reasonable — and generous.” Only time — and detailed follow-up studies — demonstrated that owning a single territory this large wasn’t actually either of these things, nor was it particularly beneficial to either buyer or seller.
Later, when they were able to pull information from their owners, they discovered that across the board, franchisees were generating 80 percent of their revenue from just six or seven zip codes.
Flexible Growth Strategy Builds Confidence
Jameka Spencer is Director of Franchise Development for Handyman Matters. She was previously a sales qualifier and served as Director of Install Services, Process Leader, and Trainer for American Exteriors, LLC.