Analyzing Industry Marketshare

Examples of Territory Defintions:

From Real Estate:

"You will not receive an exclusive territory. You must operate your office only at the specific address in the Franchise Agreement. You may solicit clients from anywhere that your real estate license permits. At any time, we have the right to own, operate, franchise or license others to operate residential or commercial real estate brokerage businesses anywhere within or outside the market where your office is located, including location in immediate proximity to your office.

"We require a minimum sales quota in order for you to continue to operate your [sic] office. Commencing on the first full calendar month beginning four (4) months after the effective data of the franchise agreement, if quarterl gross revenues fall below a minimum, you may be placed on probation and the franchise agreement may be terminated if the deficiency is not madde up during the probationary period."

From the Cleaning Sector:

"Designated Market Area will consist of one or more Franchise Territories. DMAs range in size from 10,000 to 200,000 households. A Franchise Territory is approximately 10,000 households defined by population, relative affluence, geography, and other demographic data including age, location and incomes of $50,000, $75,000, $100,000, $150,000, $200,000 and above. Territory is exclusive."

From Construction:

"The size, shape and characteristics of your Trade Area may vary from those of other Franchisees due to negotiations between you and us. We may, or may not, use zip codes or other criteria to delineate Trade Areas, but again, we anticipate Trade Areas to be mapped out by us on a case by case basis. Our configuration of the Trade Areas may be influenced by: trends in the commercial construction industry; the impace of natural disasters which may create short term or long term markets for products and services; demographic or economic trends; the number and size of construction projects started or anticipated in any given area; and our internal analysis of the demans for both the franchise and the products and services it may offer."

From Food:

"While the Development Agreement is in effect, we may not operate, and may not franchise or license any other party to operat and Restaurant [sic] in your Territory. If the Development Agreement expires or terminates but your Franchise Agreement remains in effect, we may not establish or grant any franchise for the establishment of a Restaurant within the lesser of a three (3) mile radius of the Restaurant covered by the Franchise Agreement or a redius from the Restaurant which includes either a residential or daytime population of 40,000 or more people."

• Analyzes franchisee lists from 1200 different franchise brands
• Population data from 2000 census, grouped by the population of the zipcode in which the unit exists.
• DMA = Designated Marketing Area, a marketing area defined by A.C Nielson grouping the TV viewing audiences.
• Fast food restaurants are in 203 DMAs – effectively all major markets in the US – with 70,000+ units. Based on the population of those DMAs, this means that they have a population per unit of 3,676 people.
• Growing industries have an opportunities. In the Health & Fitness industry, there are some 39,000 people per location.
• How is your territory defined?