A Guide To Tax Franchise Regions
Most people who want to get involved with a tax franchise have a limited understanding of what to expect during the actual setup process. In particular, they don't understand the specifics of how they obtain a claim on a particular area, and how that relates to potential claims by others. This is the process of regions, or territories, and is common along the vast majority of chains throughout the country.
What Are Regions?
These areas, which may vary in size, are essentially areas within which you can operate your business. You could place an office almost anywhere within the assigned area, although a central location is usually the best because you can bring in people from throughout the territory. The size and shape of the area is determined by the central company. They are the ones who originally have the right to sell these areas, and when you become an official zee, the rights for the area will transfer to you. However, it is typical for the company itself to retain certain powers of that space.
Why Do They Matter?
Regions exist to help zees. Having competition is only natural for a business, but to have two zees competing with each other for traffic doesn't help anyone. By defining areas and selling them specifically to one individual, the company assures that there is no overlap and that everyone has a fair chance at success without competition from their fellow zees. It may be annoying if these zone restrictions keep you from being able to open in a location you think is perfect, but they are saving you from a lot of competition that could dramatically impact your business.
Working With Them
There is no way to know what the regions are before you get involved with the company itself. As soon as you've made a decision about what kind of industry you want to get into and chosen definitively to franchise, you'll want to start working with a franchisor in order to figure out open areas. Depending on how densely populated your chosen area is, you may find that open areas exist quite close to existing locations. It's purely a question of estimated customer base; there is not usually a standard size or required minimum distance. It will be different for urban and suburban locations.
You may even receive guidance about selecting your site from your parent organization. After all, they want you to succeed €" they are usually paid through royalties, which means that as you are more successful, they become more successful as well. Listen to their suggestions, but also trust your own observations.
What Are Regions?
These areas, which may vary in size, are essentially areas within which you can operate your business. You could place an office almost anywhere within the assigned area, although a central location is usually the best because you can bring in people from throughout the territory. The size and shape of the area is determined by the central company. They are the ones who originally have the right to sell these areas, and when you become an official zee, the rights for the area will transfer to you. However, it is typical for the company itself to retain certain powers of that space.
Why Do They Matter?
Regions exist to help zees. Having competition is only natural for a business, but to have two zees competing with each other for traffic doesn't help anyone. By defining areas and selling them specifically to one individual, the company assures that there is no overlap and that everyone has a fair chance at success without competition from their fellow zees. It may be annoying if these zone restrictions keep you from being able to open in a location you think is perfect, but they are saving you from a lot of competition that could dramatically impact your business.
Working With Them
There is no way to know what the regions are before you get involved with the company itself. As soon as you've made a decision about what kind of industry you want to get into and chosen definitively to franchise, you'll want to start working with a franchisor in order to figure out open areas. Depending on how densely populated your chosen area is, you may find that open areas exist quite close to existing locations. It's purely a question of estimated customer base; there is not usually a standard size or required minimum distance. It will be different for urban and suburban locations.
You may even receive guidance about selecting your site from your parent organization. After all, they want you to succeed €" they are usually paid through royalties, which means that as you are more successful, they become more successful as well. Listen to their suggestions, but also trust your own observations.