Location Analysis and Territory Planning for Franchise Systems
With location analyses from WIGeoGIS, franchisors leave nothing to chance.
Are you planning to assign new target areas to franchisees and open new locations? With data-based location analyses, expansion and territory planning in franchising are no longer a question of gut instinct.
Location analyses and territory analyses for franchisors with geomarketing and GIS
As an expanding franchise company, you are constantly looking for new locations. But where are the most fruitful areas and locations for your business model? The data-based location analysis or area analysis by WIGeoGIS reveals this information in no time at all.
Our customers from the franchise sector like to use the location analysis in the data-driven online tool WIGeoLocation. The tool automatically evaluates all the essential factors for your individual choice of location and territory planning and clearly displays the results on a map. For each location, you will also receive an automatically generated report in just three steps that summarizes the potential of a location or territory.
What We Can Offer You
WIGeoGIS is an expert in location analyses. For almost 30 years, we have been advising companies in franchising on issues relating to location decisions and territory assignment. We deliver tailor-made software products for professional location analyses. Benefit from our know-how.
- We are always here for you: Location analysis software WIGeoLocation
- Implementation of the geomarketing process you want for your location analyses
- Consultation on the selection of relevant market data
- Individual training and methods training
These franchisors already benefit from location analyses
One of the franchise companies that is already successfully using the WIGeoGIS location analysis is Storebox, your warehouse next door:
“We are growing rapidly and are currently opening several new Storebox locations per month. We conclude long-term rental and franchise agreements for Storebox locations and invest a lot. That is why we want to make rational and data-driven decisions for new locations. The location analysis with WIGeoLocation from WIGeoGIS helps us do exactly that. With this tool, we can easily find the locations that are most profitable.”
Berndt Schröding, Storebox
WIGeoLocation, the geo and location analysis tool, provides support for real estate valuation, location development and sales area optimization:
“The need for recurring analyses was constantly increasing, which made it necessary to find an easier and faster way to process all these analyses. WIGeoLocation made it possible to realize this with preconfigured reports. In addition, WIGeoLocation is available online and, if necessary, an initial, quick analysis can be performed on the go to assess whether a location could be lucrative. The biggest advantages of WIGeoLocation, however, are the enormous time savings per analysis and how quickly and easily colleagues can learn to use the tool.”
Bianca Blunck, Project Manager for Franchise Agreements at hagebau
The rapid expansion of burgerme, the provider of freshly grilled burgers, is supported and made easier by the tools from WIGeoGIS.
In addition, the franchise system vit:bikes, which lets customers find the ideal bike with the help of body scanning, relies on the expertise of WIGeoGIS during the growth process.
And also olina Küchen, provider of tailor-made kitchens, has already professionalized the location search with WIGeoGIS software.
Curious? We are happy to provide consultation on location analyses in franchising!
Areas of Application and Methods of Location Analysis and Territory Planning
Location Analysis and Territory Planning for Booming Franchise Companies
Franchising systems have proven to be extremely crisis-proof and are booming like never before.
The approximately 930 franchisors in Germany generated around 135 billion euros in 2020 according to the Deutscher Franchiseverband (German Franchise Association).
According to a study by the Österreichischer Franchise-Verband (Austrian Franchise Association), in 2021 there are currently around 500 franchise systems in Austria that have recently turned over a total of 10.8 billion euros at 12,000 locations. That is a record. Nevertheless, the industry continues to grow: 74 percent of the franchise systems are expanding.
But growth does not happen on its own.
Both the decision about assigning territories to franchisees and those for individual new locations must be made wisely, without investing a lot of time and resources in location analyses. This is exactly what the Geomarketing-Software from WIGeoGIS allows you to accomplish.
“Without the tools from WIGeoGIS, franchisors do not have access to crucial data and have to make their location decisions based more on gut instinct, which can work, but might not. Wrong decisions are more likely if you work without the WIGeoGIS system.”
Waltraud Martius, Managing Director Syncon Consulting GmbH
Define target areas for the franchise territory assignment
In franchising, a franchisee is usually assigned a target area: Only that franchisee is allowed to open locations in that area. These areas can be limited to individual districts or ZIP Codes or can include entire federal states or countries.
Before assigning a territory, it is worth checking the region you are considering:
- Is my target group sufficiently represented there?
- Is there fundamental potential for my franchise system in the region?
- Does it make economic sense to open branches there?
You should therefore analyze your target areas with WIGeoLocation before you start searching for specific locations and franchisees.
You are a German franchisor in the fitness sector and your offer is
primarily aimed at young men with low purchasing power. You want to
assign the first franchise branches in Austria. It is important for you
to be close to universities, bars and public transport.
With WIGeoLocation, all it takes is just a few clicks to find the regions where these parameters are given and where your target group is particularly well represented. You can also see which areas you should avoid, because mainly older people with high purchasing power live there.
Tip: You can also invite your franchisees to take a look at
WIGeoLocation with you and discuss the advantages and disadvantages of
different target areas together.
Kurzbeschreibung des Inhaltes (für leichtere Auffindbarkeit): Location analyses and territory planning for booming franchise companies + define target areas for franchise territory assignment
Free initial consultation for location analyses. We will explain how it works and what you will need!
Identification of White Spots
If you already operate locations in a region and want to open more, a white spot analysis can be useful to determine:
Where are there still promising white spots within your network?
Example: You have assigned 15 franchise branches in Switzerland and you want to add three more. First you define the catchment areas for the existing branches: For example, your customers should be able to reach your locations within 15 minutes by car. This will reveal all those areas on the map that are not covered by any of your branches. You can now analyze these white spot areas more precisely with regard to your target groups.
This allows you to see at a glance where there is further potential for your franchise system.
Picture: The white spots of a franchisor in Switzerland were determined on the basis of market potential and competition. The next steps are to determine the franchise territory for the contractual partner and to define delivery areas.
Define delivery and catchment areas quickly
Even within the contract territories assigned to franchisees, our geomarketing tools can be used to divide them into catchment or delivery areas so that your customers are optimally supplied.
Example: You are a fast food provider with a focus on delivery and guarantee that from the time the order is placed the food will be delivered within 25 minutes. Enter your locations in WIGeoLocation and define each of the catchment areas as 15 minutes, allowing 10 minutes for the preparation and packaging of the food. Now you can see the areas where it is possible to deliver within 15 minutes and where you need a better solution, such as assigning part of a delivery area to another branch or opening a new location.
Rule out cannibalization
If locations are
too close together and their service areas overlap, they can take
business away from each other. This cannibalization can easily be
avoided with a timely location analysis.
Quick Location Checks
After the target areas have been determined, the task is to find specific locations. Before you analyze individual locations in detail, a quick location check is useful.
Without having to configure the software beforehand, you can find out whether locations basically fit your franchise system or not. Especially for franchisors who are expanding rapidly and have to check many potential locations, it makes sense to use a quick location check to filter out those that are definitely not suitable.
This is how you can quickly find out:
- what the socio-demography is like in the catchment area around the potential location
- how strong or weak your target group is represented
- what other infrastructure is present in general
Concrete Location Analysis with Individual Location Reports
A positive, quick location check is followed by a more in-depth location analysis. With WIGeoLocation, this is particularly fast, convenient and customizable.
“An individual location analysis is performed when a location is relatively certain and you want detailed information about it.”
Martin Ortner, Senior Consultant at WIGeoGIS
Example: You run a pizza franchise chain and are looking for locations near housing estates in which mainly families with medium purchasing power live and where there is good access to public transport. We configure the software for you to identify precisely these requirements and from now on you can perform as many location queries as you need.
In just three steps (enter the location, define the custom catchment area, create a report with a single click) you will receive an automatically generated location report for each location, that evaluates the exact criteria that are important for your location decisions.
You can make the location reports available to your franchisees so that they can reduce the risk of their investment or apply for a loan from a bank.
Picture: The necessary key figures are collected individually in reports for each catchment area. This process takes place automatically within just a few seconds. The reports can include a variety of relevant data.
Controlling and Benchmarking
A location analysis is not a one-way street: Not only can you extract data, but you can also enter data yourself in order to gain insights for your business.
“For controlling and benchmarking, I particularly recommend integrating more of your data into the system.”
Marcel Kirrmann, Consultant at WIGeoGIS
Then questions like these can be visually represented in the geomarketing software:
- Which of my franchise areas and locations generate the most and which generate the least?
- Which locations already achieve my goals? Which locations do not?
- How much is ordered where?
- Which branches deliver the fastest? Which are the slowest?
- Where does direct mail bring the most revenue?
software shows you clearly on the map in the form of small and large
dots where your franchise partners achieve their goals and where
improvement is needed. This clearly shows when you have a north-south,
east-west or urban-rural divide in your sales.
On the basis of this controlling, you can also determine where change is needed. Maybe one location is more suitable as a pure delivery branch, while another might be able to accommodate several more seats.
“In terms of benchmarking, we can define a sample location with you in the location analysis software that you can then use to analyze and compare locations. In this way, you are constantly learning new things for your new potential locations.”
Marcel Kirrmann, Consultant at WIGeoGIS
If you would like to learn more about location analyses in franchising, simply contact us and we will be happy to answer all your questions!
Identify target groups and determine marketing measures
Do you want to set targeted marketing measures and, for example, offer your target group a voucher campaign? Do you know the characteristics of your target group, but do not know where exactly you can reach them?
Geomarketing and GIS support you and show you on the map where your potential customers live and work. This enables you to plan targeted mailings. High wastage from advertising campaigns is a thing of the past.
Geomarketing can also help you if you operate an online ordering system: You can see exactly where your customers are and how high your sales are in which area.
Example: With the help of the location analysis software, you determine that the sales per order in a certain ZIP Code area are particularly high. The software shows you this at a glance on a map: the higher the sales, the larger the circle symbol. Now you know the precise area where you can offer premium quality products.
You can use this information to help plan your next marketing measures.
Here you can find out more about location analysis from WIGeoGIS and how it benefits franchise companies in practice
WIGeoGIS supports your location analysis with extensive consulting know-how and geomarketing software. This allows you to efficiently assess your branch and retail networks.
Location Analysis: Case Study Storebox
Rational and fact-based location decisions: Storebox, your warehouse next door, relies on location analyses created with WIGeoLocation.
Strategic Retailer Network Planning – Example hagebau
WIGeoLocation, the geo and location analysis tool, provides support for real estate valuation, location development and sales area optimization
Location and Territory Analyses in Franchising: Request a free initial consultation
- FREE initial consultation*
- Non-binding, without further obligations
- By telephone or video call
Would you like to learn more about location analyses and territory analyses for franchise systems? I will gladly support you. Please contact me!
* The products of WIGeoGIS are intended for companies and are not suitable for private use. If you need a one-time market analysis, we will gladly make you a service offer.
Is only WIGeoLocation suitable for location analysis in the franchise industry?
No, but the tool WIGeoLocation, the intuitive WebGIS software for location analysis, is the most popular with our customers from the franchise industry.
An alternative, especially if you have GIS experts in your company, is the desktop software QGIS.
Another way to get a location analysis is through a consulting project in which we evaluate your individual location questions. This variant is particularly useful if you do not constantly use the software.
Book your free initial consultation now and together we will find the best solution for your needs.
Do I have to pay for each report from WIGeoLocation?
No. We offer you a flat rate with WIGeoLocation. This means that you can make as many location or area queries as you want and generate as many reports as you want and need – all at no additional cost.
What data does the WIGeoGIS offer contain?
Data forms the basis for geomarketing analyses. With the WIGeoGIS offer, you receive access to a wide variety of data including market data, such as demographic data, purchasing power data and geodata, such as road data.