Stats to drive up your franchise income!

No one likes filling in forms, whether it was last year’s Census or the government forms your business has to complete. Graham Barlow, of Tech4T explains how they are actually a help rather than a hindrance

The number of forms you need to complete can often seem like an endless task. However, there is some consolation. Much of the information will have been neatly packaged into robust data sets, which savvy franchise owners are using in a myriad of ways to deploy people, time, equipment and money more astutely. This is most apparent when it comes to planning territory networks or siting new stores.


Historically, it has been popular to base territory networks on an arbitrary number of businesses or households. Today it is far more common for franchisors to make use of demographic and business statistics to accurately calculate the business opportunity available in any given area.

Taking this spatial analysis approach gives potential franchise owners confidence that their franchise model has been well thought out.

Franchisors can demonstrate the principles behind the territory design and give assurances about the viability of the opportunity.


Spatial analysis and data are not just beneficial to new franchise companies. There has been a surge in well established franchises and those handling resales undertaking a franchise business review with significant benefits.

Franchisors gain a clear picture as to how territories have developed and, importantly, understand the reasons for any differences in performance.

Under-worked territories can be identified and the reasons for this explored with a view to taking advantage of all opportunities going forward. If you’re reselling territories, the true territory potential can be fully taken into account – particularly important if there are under-worked areas.

A business review also benefits franchise owners with the identification of different customer groups and the value of each to the company. This allows for much more targeted marketing. Different offers can be developed to suit different groups so as to increase take-up of products or services.

An added bonus is the identification of unprofitable customer types to be excluded from future marketing activities.

Next steps

In the future, more and more franchises will reap the benefits of data and take a more scientific approach to territory design and location planning.

Here’s a vital tip learned the hard way by some of our customers: If you are a new franchise, set up your business systems so that you can collect sales and customer information from your franchise owners from the outset. Not just top level sales but the detailed split as to exactly what customers are purchasing, in what quantities and when.

This information, when analysed and forecast correctly, will provide the insights to drive business planning, product development, sales process and help ensure your new franchise owners are equipped to deliver the income levels both you and they expect. Most importantly this will keep you ahead of your competitors as markets and products change.