Franchise Territories for Mobile Businesses; Why Limitations


In franchising an individual desirous of their own business will sign on with a franchising company and use their brand name, know how and expertise to make a living. The franchisor will generally assign an exclusive territory with limitations. In our franchise company we have mobile service units, which clean cars and we have to have territories to prevent in-fighting from franchisees which might inadvertently end up competing with one another.

Let us first talk about boundaries. Let us talk about why we have territories in the first place? Historically we have had in our mobile car wash industry one-man operations that may work in multiple cities. A young man or a young woman might go out and buy a pick up truck or van and put a plastic water tank or a couple of fifty-five gallon drums in the back of their vehicle. Along with a small pressure washer they would be instantly in business. Now, what they would do is go to certain office buildings and try to get customers. They would get a few of their friends to sign up. Some would say; "Come on back". They would keep coming back to these locations every so often and wash cars, usually once per week or twice per month. Then they would get a little bit into auto detailing as they learned the techniques, then they would mostly start to work on the higher end services because of course that pays a bigger dollar per car.

So they would do a little washing, some detailing and they would drive from one city to another. Then they would decide that, well they could get more money working over here in this richer area even though they lived in a poor area. When actually they could have made more money in a poor area doing fleet washing. But this is what a large percentage of our competition is doing now.

They will drive from city to city to city, spending time driving around in search of the big kill, the highest ticket easy money detail, often a Law firm with attorneys with more money than brains. They might spend each weekday in a different city. Never really developing a real strong clientele or strong customer loyalty. Never saturating the entire market place, but rather driving from place to place. They would be wasting a lot of time driving, sometimes during the middle of the day, and wasting money and gas and labor. Driving from place to place to wash cars in hopes of scoring the big detail.

Franchisors are looking to maximize each sector and not leave any grid un-tapped, thus setting up a grid defense plan to extend brand name makes sense. As a franchisee in such a franchise system your job is to make money and luckily the closer your customers are together the more market saturation you have the better the franchise brand name does in the area. Ah and the more money you will make too. WIN/WIN; think about it, think about franchising.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs


MORE RESOURCES:

8x8, Inc. Joins Small Business Bailout Efforts
MarketWatch - 12 hours ago
For a small business, this can result in significant cost savings as there is no expensive equipment to buy or maintain. Additionally, monthly service fees ...
8x8 Cuts Fees in Half in New VoIP Services Offer for Small Businesses TMCnet
This Holiday Season, Give the Gift of VoIP TMCnet
all 11 news articles


SAIC Presents UAV Communications, Inc. 2008 Small Business of the ...
MarketWatch - 12 hours ago
today announced that it has presented UAV Communications, Inc. (UAV) SAIC's 2008 Small Business of the Year Award. Tony Moraco, SAIC senior vice president ...


Sky News

UPDATE 1-HBOS to provide small business support package
Reuters - 18 hours ago
HBOS also said it would guarantee pricing on Bank of Scotland small business customer overdrafts for 12 months from the date of arrangement for new loans ...
Bank of Scotland Announces Small Business Support Package istockAnalyst.com (press release)
Britain's clearing banks fast-forward aid for small business Daily Mail
Bank of Scotland announces small business support package Mortgage Introducer
Independent - Manchester Evening News
all 104 news articles


Wall Street Journal Blogs

Small-Business Owners Divided on Auto Maker Bailout
Wall Street Journal Blogs, NY - 7 hours ago
Many small-business owners vehemently oppose bailing out Wall Street. But what about Detroit and the Big Three auto makers? That’sa little more complicated. ...
Small businesses depend on auto industry rescue Detroit Free Press
all 9 news articles


Alaska small-business owners vote
Bristol Bay Times, AK - 4 hours ago
While final votes are tallied in national and state elections, voting continues for Alaska’s small business owners. Each year, the National Federation of ...


CRM Software: Delivering Significant Value to the Small Business
TMCnet - 4 hours ago
For a highly competitive small business, a CRM tool is a must, serving as a multi-functional system for tracking and analyzing critical data about vital ...


Small Business Initiative Sponsors Education & Professional ...
MarketWatch - 10 hours ago
The Prince George's County Small Business Initiative has teamed up with Forrester Construction and the Prince George's County Public Schools to provide ...


Financial Roundup: LandAmerica Leaves Investors Hanging, GAO Urges ...
BNET, Ca - 8 hours ago
[Source: The New York Times] Credit not the problem with small business lending — An SEC panel says that credit is available for small business lending. ...


SBA Disaster Loans Available Following Secretary of Agriculture ...
MarketWatch - 9 hours ago
ATLANTA, Dec 03, 2008 (BUSINESS WIRE) -- The US Small Business Administration announces today that federal economic injury disaster loans are available to ...


Small Business Puts Healthcare Reform First
PR Web (press release), WA - 7 hours ago
Small Business Majority founder John Arensmeyer comments on new research from the Robert Wood Johnson Foundation that finds that small business owners put ...

Small-Business - Google News

home | site map
© myfinancialsolutiononline.com 2007