How We Determine Franchise Territories

Determining territory boundaries of a home service and home improvement franchise is a lot different than it is in the retail and food franchise world.  When we were deciding how to divide the territories we went through several different scenarios before landing on the one that best fits how our business model works.  A lot of different service franchises will award territories based solely on population (number of potential customers).  That concept has a lot of positives, but it has one HUGE negative - how do you keep franchises from overlapping and encroaching on one-another?  

That's why we came up with a very different (and better) way of determining the territory boundaries for our franchise locations.  We award territories that have very clearly defined boundary lines using what the US census bureau calls Metropolitan Statistical Areas (MSA). 

What is a Metropolitan Statistical Area?

• An MSA is the formal definition of a region that consists of a city and surrounding communities that are linked by social and economic factors.

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How many MSAs are there?

• The US Census Bureau states that there are 389 MSAs in the United States.

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Understanding the MSA as it relates to the Initial Franchise Fee

• The territories are segmented into 4 groups by population size rankings.

  • Mega-Markets – Top 30

  • Primary Markets – 31-70

  • Secondary Markets – 71-150

  • Tertiary Markets – 151+

• The Franchise fee for each MSA segment are:

  • Mega – Divided into 3-4 Secondary territories - $50,000 for each territory

  • Primary - $70,000

  • Secondary - $50,000

  • Tertiary - $35,000

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See below to find your desired territory.  Consult your Franchise Advisor for more clarification on investment and availability.