Case Study

The importance of franchise territory mapping

Situation

A-Star Sports provide a fun-filled, multi-sports experience for children aged two to ten years old.  

Having proved the business model with a small network of existing classes, A-Star Sports decided that it was time to expand, and franchising was the best model to achieve the company goals.

A key component of developing a franchise is to define the commercial opportunity to be awarded within each territory and moving forward, using this to plan out the territory network throughout the UK. Knowing that once a territory is awarded as part of a franchise agreement the geography is locked down for many years, A-Star Sports approached Atlas Mapping for professional advice and territory planning.

Solution

Atlas Mapping territory map

The best way to quantify the opportunity to award a franchisee, is to fully understand the trade area(s) that enabled the core business to develop successfully. This analysis involves understanding the spread of customer locations, the appropriate demographics (market size), and other unique geographical factors that all came together to get the business to the point where it is franchisable.

Atlas Mapping provided this analysis through the use of high-end, professional mapping software and discussed the results with A-Star Sports. By involving the business owners, the client able to put forward their valuable input, whilst having Atlas Mapping’s expertise and experience guide the crucial decisions being made.

A minimum level of commercial opportunity for each territory was decided, ensuring revenue targets could be met. Other major factors accounted for in the territory design were the serviceability of the area, and ensuring towns weren’t cut in two where they shouldn’t be.

Territories were divided into three main classifications; ready to sell territories, potential territories and expansion areas. This ensured an optimum number of territories and therefore efficient network was created. There was now extreme confidence that each territory would work for both the franchisee and the franchisor.

Outcome

Atlas Mapping designed a full UK territory network, providing critical information on existing and new territories to aid the franchisor in recruitment and on-going support, and the franchisees in developing their business intelligently.

The territories gave A-Star Sports the confidence to advertise the franchise offering, and with a full set of professional territory maps and reports for each territory, start negotiating with prospective franchisees.

Alongside the tangible deliverables, A-Star Sports started their franchise development reassured that the territories they award will give the brand the best market reach and improved chance to hit the company goals.

“The team at Atlas Mapping provided A-Star an above and beyond level of service.  Their professionalism and willingness to deal with multiple individuals working towards the same goal really helped A-Star develop the franchise offering.  I would highly recommend their services“ Gary Bassett, Director, A-Star Sports

 
 
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