In the franchising world, one of the most significant business model decisions you'll make is whether to buy a location-based brick-and-mortar brand or a service-based brand. Based on this decision, the rules around territories change.
Franchisor companies will define the territory sizes based on some level of projected revenue from the customer base. For service brands, this projected potential revenue will likely be determined by the number of residents, average household income, the number of businesses or a combination of these factors.
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