Once franchises partner with franchisees, they're rooted to a place in the ground - a specific geographic catchment - that will essentially determine how their business fares over the coming years. Economies swing this way and that, so it's critical to find a place that will thrive for years to come. It's fascinating to read about some measures that franchises have taken up to discover the perfect places to grow.
Smoothie King is one of the most successful smoothie franchisies in America. They've built an incredible reputation and have quite an interesting strategy towards their stores. They work with Buxton, a company that according to Stores.org, "provides analysis of 120 million U.S. households and 75,000 customer characteristics on behalf of its retail and restaurant clients."
Richard Leveille, executive VP of franchise development, explains that Buston helps them get inside the head of their customers, learning "how do they live their lives, how do they spend their money. Then we do the matching with other successful Smoothie King locations."
Smoothie King is a franchise that believes its role is primarily improving people's lives. Making profits comes second. They cruch data to find the places where their business will thrive, then they search out the entrepreneur who's right for their system. It's a fascinating business model.