If you are thinking about purchasing a home-based business opportunity, you’ll want to know as much as you can about protected home-based business opportunity territories. Determining the protected territory generally ensures that a home-based business opportunity will not have to compete with another nearby home-based business opportunity outlet. Competition between home-based business opportunity might occur to some extent, particularly in urban areas. Because the term is open to interpretation, it can become problematic and a major cause of conflict. Both the licensor and home-based business opportunity want to make the most money they can, but the strategy for doing so is not always the same for each party.
As a licensor we have more latitude, we are mindful of how to divide territories so that a home-based business opportunity with Master Odor Removal has enough opportunity to succeed without encroachment by another home-based business opportunity within the system. On the one hand, by cutting territories into small portions, a licensor or franchisors force home-based business opportunity to penetrate the market more deeply so that the overall brand has a higher market saturation. However, a home-based business opportunity territory must be large enough to ensure a good earning potential for the licensee. The goal is to achieve a balance between these conflicting points of view, one that considers brand awareness and success (sales and profits), convenience (customer service), and home-based business opportunity system stability.
Ideally, the situation should provide maximum opportunities for both the home-based business opportunity (potential for profit) and the licensee’s need for growth and name recognition through aggregate sales. Therefore, like any relationship there is some degree of compromise. It’s not a “no win” situation, but the issue does require careful analysis, particularly before deciding to purchase a home-based business opportunity. Addressing home-based business opportunity protected territories after taking on a opportunity is difficult and can quickly spoil the opportunity relationship. Like most situations that require a large investment of both time and money, this too requires that you ask as many questions as possible before joining any home-based business opportunity system. You might ask, for instance, how the home-based business opportunity territories are determined and if they are clearly defined?
Here are several additional questions to raise:
· What does the home-based business opportunity Licensing Agreement say about protected territory and how does that apply to you?
· What does the Licensing Agreement say about geographic restrictions in terms of marketing and sales?
· Are there other competitors in the area? If so, how close are they?
· Will there be enough customers to be successful?
· How will your customers be able to distinguish between you and other home-based business opportunity within the system?
· Can you choose your territory?
· What are the advantages and disadvantages associated with each area?
· What kind of competition could you expect in the near and far future — one year, five years, 10 years?
· What if you want to open additional home-based business opportunities within the territory or in a separate territory at a later date?
· What do other existing home-based business opportunity think of the protected territory issue? Are they willing to be frank and can they offer useful insights?
· Do you have any input as to where the site within the territory is located or has the location been predetermined?