As a start-up franchisor it is important to consider territory availability before granting a franchise. The duration of franchise agreements makes it difficult to recapture territory that has been contractually obligated to another franchisee, regardless of whether you have determined that additional stores can be placed. It is for this reason that an exclusive franchise territory is widely considered a major selling point.

Contrary to an exclusive territory is an Area of Primary Responsibility. An Area of Primary Responsibility provides a geographically defined area for which the franchisee is responsible to market within. An Area of Primary Responsibility does not grant any territorial exclusivity to the franchisee. Find cheapest moves for San Diego here.

On an ongoing basis, it is commonplace for franchisors to offer exclusive territory as an incentive to multi-unit developers. If a franchisee is qualified to purchase multiple locations, a franchisor will provide them an area, defined by zip codes or other geographic identifiers, and a timetable that this area must be developed. The exclusion of this territory expires at the end of the allotted timetable.

After reviewing the existing One Hour Auto locations, and discussions with One Hour Auto management, a market of 50,000 population and a strong demographic profile will be more than sufficient to support a single One Hour Auto location.

Franchise Marketing Systems recommends that One Hour Auto offer exclusive territories to their franchisees as one of the key benefits to early adopters. Down the road, this could be altered and One Hour Auto might switch to an Area of Primary Responsibility in which the franchisees would not have exclusive rights to their areas of business.

We will look at each area (beyond population and geographical distance) to evaluate the potential for doing business in that region based on numerous socio-economic factors such as average household income, existence of competition, etc.

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