Every franchise agreement should discuss the issue of the source of customers. This is known as the geographical territory, protected territory or exclusive territory. Many agreements spell out the zone or area of your customer source. It is important to understand the Geographical, Protected or Exclusive Territory Clause in the Franchise Agreement.
Who is Your Customer?
You would think this is a simple question with an easy answer. But for most folks, they can’t identify their customer. It seems elusive or undefinable. If you are in business, you need to answer this one question. You need to know. When you know, then you can orient your business to that one single focus and become the business you dream about.
I had the privilege of meeting a potential client in one of those business gatherings. I asked him the usual questions and he started to explain his business operation. Well, he was basically a landlord to a gaming function. When I become fascinated by the enterprise, I reoriented my questions to some specifics. Sure enough he charges some high end prices for the facilities. Man, I needed to figure out how he was able to do this. With some prodding, he finally explained that his marketing approach pretty much gave him “A license to steal”.