Sales Impact Analysis

Sales Impact Analysis for Franchiser

The situation: The client is a national chain whose demographic studies indicated they were not fully penetrating many U.S. markets. Further penetration would bring in more franchise revenue, an obvious goal, and also help franchises and the corporation by increasing advertising dollars and creating more customer recognition.

The issue: When good sites were identified, they often appeared to be sharing trade area(s) with corporate-owned and sister franchise restaurants. While a small transfer of sales was acceptable to the corporation and the franchises, sales transfer over a certain percentage would not be beneficial for either.

The problem: Transfer studies conducted by the corporation’s research department were challenged by the franchises, which doubted the validity of both the sources and the methodology. While the corporation wanted to open more franchised and corporate restaurants, they were also eager to keep everyone happy and out of court.

The solution: DeForest & Company, through the use of GIS and other proprietary software, was able to solve the problems faced by the corporation and its franchises. Professional data collection and an unbiased, accurate and consistent analysis enabled DeForest & Company to create a legally defensible position for the corporation to further penetrate markets.

The client is continuing to open new stores, both corporate and franchise operated, throughout the U.S., and the threat of legal problems has been significantly reduced