Ever want to know how far you can fly from your home airport?  This interactive map from Kayak.com is amazing.  Give it a try!

Click here to access the map.

The U.S. franchising industry is poised for modest growth in 2011, according to two new studies to be released this week.

Franchise businesses in most sectors are expected to add more store units and employees this year, concludes an analysis produced by consulting firm PricewaterhouseCoopers on behalf of the International Franchise Association, a trade group in Washington. PWC attributes the positive outlook in large part to the recently enacted tax and unemployment benefits package, which includes payroll and income tax cuts.

Getty Images

The study projects that the number of franchise units will grow 2.5% in 2011 to 784,802. Last year, franchise units increased just 0.3%, and their ranks declined 3.6% in 2009.

Franchises are also expected to create 194,000 new jobs in 2011, a 2.5% increase that will bring total employment to an estimated 7.8 million. Franchises expanded their payrolls 0.6% in 2010 after shedding 2.8% of their employees in 2009.

Economic output—the gross value of the goods and services a business produces—is projected to grow 4.7%, or $33.3 billion, for franchise businesses, reaching an estimated $739.9 billion in 2011, PWC said. Last year, economic output rose 3.4%, following a 0.3% increase in 2009.

By sector, all business lines except business services are projected to increase in store volume and employment this year. The largest gains in these areas are expected in lodging, automotive and retail products/services. In terms of economic output, industries expected to see the greatest increases are automotive, commercial and residential services, personal services and retail food.

Business is starting to improve for Driven Brands Inc. and its six franchise brands, which include Maaco and Meineke, said Ken Walker, chairman and chief executive of the Charlotte, N.C., auto-repair company. Following a relatively flat 2009, Driven Brands’s revenue increased 3.1% last year, and Mr. Walker anticipates a 5% increase in 2011 sales. “We’re going to see a good period,” he said. “I am very confident.”

Meanwhile, a recent survey of 142 franchisees by the franchise association also suggests that 2011 will be a better year for their businesses. Nearly three-quarters of respondents said they expect “moderate to significant” increases in same-store sales over the next 12 months, while 40% said they expect to see an improvement in business conditions. Forty-five percent said they expect to increase employment “moderately to significantly.”

To be sure, survey respondents also noted that obtaining sufficient funding remains a major hurdle to success. Thirty percent said lack of credit has had a “significant impact on ability to expand business,” and 25% reported it has had a “moderate impact.” In addition, 42% of franchisees said they’ve seen “no improvement” in access to credit in recent months, while 28% reported a “moderate improvement.” Just 18% said that a lack of credit had “no impact” on their business and that they were able to obtain financing, while 27% said their business did not require any financing.

“Without more consistent access to credit, franchisees can’t grow,” said Steve Caldeira, president and CEO of the association. “We’re beginning to see some light at the end of the tunnel, but clearly again we have a long way to go.”

These days, only about 40% of BrightStar Care franchisees rely on bank loans to get started, add more units or make renovations, whereas three years ago just about all of them tapped home-equity loans for such purposes, said Shelly Sun, chief executive officer. Today, 40% of the home health-care company’s 195 franchisees nationwide are also funded by owners’ retirement savings, and 20% operate with cash investments, she said.

BrightStar Care earned $100 million in system-wide sales last year, up from $52 million in 2009. The company projects sales of $175 million in 2011, plus the opening of 86 more locations. Its corporate staff increased to 53 people last year and “because of the [extension of] the Bush tax cuts, we plan to add 15 additional personnel in 2011,” Ms. Sun said. She further attributes the company’s expansion to a growing preference among seniors for home-based health care rather than relocation to a nursing home or assisted-living facility.

To help prospective franchisees get started, some franchisors have begun offering in-house financing options in recent years. Nadiene Raia said she launched a Money Mailer franchise last September by borrowing roughly $30,000 of the $40,000 total cost from the direct-mail advertiser. The loan includes the option to defer interest-free payments for the first two years.

Ms. Raia had previously been laid off from a publisher position at an alternative weekly newspaper in Sarasota, Fla., and she said she didn’t bother to seek out a bank loan because she lacked a track record of owning a business. “For somebody that’s looking to get involved in franchising and doesn’t have the capital, this is the way to go,” she said of the option she chose.

Article by Sarah E Needleman at the Wall Street Journal.  01/12/11

Ok, so we are now over halfway through the first month of 2011…when is the 2010 Census data going to surface?  This timeline may help clear up some of those questions floating around out there.

Click Here to access the timeline.

This is a very well done video-graphic from National Geographic. Its only 3 minutes but the cram a lot of interesting stats. Enjoy.

This is an excellent interactive map courtesy of the US Census Bureau.  It shows population changes state by state between each decennial census starting in 1910.  Take note that the 2010 Census data is due on December 21 so come back in a few days to see how your state does in 2010.  Also keep in mind that this is just state population data and the full 2010 Census outcome won’t likely be available for several months yet.
Enjoy the map!

If you have any questions about data reporting and mapping please let me know.
Rich Mithoff
888.848.4436 x4

Franchise organizations today are faced with a serious challenge, to produce more with less.  How does your organization manage this issue?  Don’t worry, it’s a rhetorical question, one to get the wheels turning.   I am sharing 5 strategies below that I have regularly encountered over the years from listening to clients and mapping my own territories.

1.   Define your Territories Before they are Sold.

This may seem easier said than done but there is nothing worse that knowing you could have squeezed more franchise territories into a market than you did.  A market that can handle 3 territories but only contains 2 is a major revenue loss.  By proactively creating accurately defined territories, i.e.: 50,000 Owner Occupied Housing Units, you not only portray confidence in a territory’s success based on a standard benchmark, but you also create a demand.  If you can create just 1 additional territory to maximize revenue, you win.

2.   Utilize the Most Current Internal and External Data.

In today’s economy, many major markets are in constant flux so make sure you have access to reliable, up-to-date data.  There are multiple sources for updated Census Demographics and Business Data that can prove invaluable to making sure your sites or territories are located effectively to generate expected profits.  You likely have internal company data, such as revenue by zip or customer sales data that can help predict future results. Make sure you use it.

3.   Do Your Own Site Research.

Many Franchise owners count on their brokers to provide site reports around locations they are proposing to you.  Brokers often have access to demographic data and mapping services but do you know how up-to-date it is?  Isn’t your broker trying to sell or lease a property and make a commission?  The cost for choosing the wrong location can cost more than lost sales from that location, and it is a strike against you when other franchise prospects inquire about the success of your concept.

4.   Create Territories by Utilizing Specific Geographies.

Territories that are defined by specific geographies, such as ZIP codes, counties, or standard Census boundaries are much easier to control and gauge.  Data is almost always tied to specific geographic areas and it is much easier to manage expectations with the demographic make-up of those territories.  Territories defined by a set of landmarks, like highways and rivers are much more difficult to measure and therefore very challenging to predict success.

5.   Maintain Easy Access to Data.

With so many tools and resources available to us keeping things organized is extremely important.  When it comes to territory data and demographic data it is critical to have easy access to it.  If a potential franchise prospect wants to see a breakdown of the territory under consideration you should be in a position to provide it within minutes.  This not only saves you valuable time putting it all together but it decreases the possibility for the prospect to continue shopping elsewhere.  Data should be easily accessible and transferable which makes it much easier for the client to access it on the other end.

GeoMetrx.com is a powerful web-application that will allow you to apply the 5 strategies above.  For more information please contact Rich @ 888.848.4436 x4, go to www.geometrx.com or request a demonstration/free trial — Click Here

Stay Grounded,

Rich Mithoff

Franchise Companies are growing quickly these days and much of this growth is seen internationally.  Now with growth comes growing pains which we all know is a normal part of business.   Don’t jump to any blind conclusions…when it comes to marketing, site selection and territory mapping, knowing what applications to use and how can be quite  a daunting task.

With different countries comes different geographies and different data.  Take for example the widely known United States five digit ZIP code.  Everybody can identify with their home ZIP.  On a side note, the ZIP code was introduced in 1963 and ZIP stands for Zone Improvement Plan.  The ZIP code is a common geography for Franchisors to define their territories in the States.  They are easy to use with demographic data or with your own company data.  But when crossing the border north into Canada you will need to find another option.    A similar geography in Canada is the Postal Code, a 6-digit code made up of letters and numbers, but they are MUCH smaller.  Boundaries for the first three characters of the Canadian Postal Code (known as the FSA or Forward Sortation Area) are most similar in size to US 5-digit ZIP codes.  Every country has their own unique geographies…what also compounds the challenge of marketing, site selection and territory mapping is the data.

Data is a key component to any marketing and mapping efforts.  What are your data sources? Are they reputable? How often are they updated? What is the source?  In the US, the dicennial Census takes place every ten years.  Currently in process the 2010 Census Data will not be widely available until early 2012 at best.  Data providers are still using the 2000 Census and its updates to create current and more “marketing friendly” estimates and projections.  Most companies release annual updates and one, our partner PopStats, releases quarterly updates.  The Canadian Census is performed every 5 years, with the most recent being 2006.

Now, throw in Europe, Asia, Latin America and other regions around the world in and it can get pretty confusing.  GeoMetrx has access to most of the more industrialized countries and datasets and they are all capable of accurate site analysis, territory mapping and alignment and other marketing capabilities for the internationally expanding franchise.

Stay Grounded,

Rich

If you are interested in our service, or just want to ask me a few questions regarding international data sources please feel free to call or email.  My contact info is below.

Rich Mithoff  |  Geographic Enterprises  |  888.848.4436 x4  |  rich@geo-e.com

This is a very interesting map from Forbes.com and Jon Bruner showing the migration patterns in several major US Counties.  The data is 2008 but still very intriguing.  Check out your county, is it growing or shrinking?  Los Angeles appears to be in decline while King County (Seattle Area) is growing.  Dallas appears fairly even with inward and outward movement.

Click here to see the interactive map

You can clear the lines and find your county for more relevant data.

I never thought such a simple, logical feature such as viewing data at a ZIP Code level would be such a tremendous benefit to franchise companies.  That is a recurring theme I hear on a daily basis, “can you help me create territories by zipcodes based on populations segments of 200,000?”  From Junk Removal to Children’s Services, Franchise Developers  save  money and countless hours by creating territories and managing them online.  There are a few of these applications out there but I am not aware of any that are web-based and at the price point GeoMetrx is…starting at just $1990 a year.  Very well equipped subscriptions are generally less than $5000 a year.

How can Franchise Developer use GeoMetrx for Territory Management?

• Import and Export territory structures including geography based (postal-code) or point based (retail stores, home based businesses, hospitals)
• Build new Territories accurately and equitably in just minutes
• Balance Territories based on hundreds of demographic variables (Households, Income, Owner Occupied Housing Units, etc.)
• Create customized territory maps within GeoMetrx or utilize our Google Earth/Maps export
• Minimize travel-times
• Run real time scenarios for potential clients and distribute territory reports to their owners instantly via the web

Want to see GeoMetrx in action?  Please click here to request a personalized demonstration.

Some images below will give you a sneak peek into the GeoMetrx Territory Manager (click to enlarge)

Territory Manager Interface

Google Earth Export

Balancing Chart

Effective territory management is critical to maximize revenue, why limit an are to 3 territories when it can support 4?  The cost of leaving a territory on the table is a loss of thousands of dollars.   GeoMetrx is the application that can ensure maximum profitability.

Don’t hesitate to contact me directly with any questions.  To schedule a web-demonstration,  click here.

Stay grounded,

Rich Mithoff    |    888.848.4436 x4

This is a very touching map from CNN.com providing a snapshot into the lives of our service men and women who gave their lives defending our freedom. 

Click the link below for a larger, interactive version.

http://www.cnn.com/SPECIALS/war.casualties/index.html

In case you were wondering what data is compiled by US Census Bureau, take a peek at the form.

Click here for the CENSUS 2010 Questionnaire

The Census Bureau is touting it as one of the shortest in history with only 10 questions taking no more than 10 minutes to complete.

You may think the Census is just a way for the government to keep tabs on us but that’s not the case.  (well, maybe a little)  Its actually a very important tool to gauge how to allocate resources and federal funding to infrastructure and services.  Hospitals, Emergency Services & Disaster Relief, Schools, Senior Centers and more all benefit from comprehensive data.

Companies like Geographic Enterprises compile this data for easy use and access to Economic Development Organizations, Demographic & Market Researchers, Commercial Real Estate Firms, Assisted Living Communities, Chambers of Commerce and more.  For companies to make accurate decisions on where to open their next location, who to target with direct mail and how to build a balanced sales territory it imperative to have as the best demographic resources at your fingertips.  This simple 10 question form is where it all starts.

Want to see this data in action?  Feel free to contact me personally for a  Research360 web-demonstration to look at basic demographics, retail spending patterns, traffic patterns, federal funding data, venture capital data and even YOUR OWN company data.

Stay grounded,

Rich Mithoff

888.848.4436 x4

Remember back 10 years ago when you received the 2000 Census questionnaire?  Has it been a decade since the turn of the century??  Times sure have changed…Google was just 2 years old and Facebook & Twitter were still years away.  A lot has happened since then, some good, some bad.  But here we are, a new decade and new optimism.  Lets take a moment to look back on the last Census and see how we can make this one even better.  Its all up to us and our participation is key.

How did your community perform back in 2000?  This map from the Census.gov site provides an interesting illustration.

Overall I’d say we did fairly well, definitely better than our typical voter turnout.  Still some room for improvement…we can do this.  Keep an eye out for your questionnaire coming soon, mid-March is what the Census Bureau is saying.

Stay Grounded,

Rich Mithoff

I found this interactive map on Portfolio.com showing the toll of the Great Recession on major US cities.  The data is a little dated, 2008, but gives you an idea of some areas that have gained wealth and those that have lost wealth.   Newport Beach, CA is leading the way with a with 28.6% of households earning over $200,000/yr and Reading, PA without a single household earning $200,ooo.

CLICK ON THE IMAGE BELOW FOR THE INTERACTIVE MAP

Site location research is a funny thing.  In an age where many retailers are online most have a combination of internet stores and the traditional brick and mortar.  Brick and mortar still has the advantage, for now, so finding the best site can be a multi-million dollar decision.  So why not spend a few bucks on good demographic data right?

CopyCat Site Location Research

Site location is easy…a commercial broker finds you an available property, runs a ring study and whammo, the demographic report supports your market.  Wow…simple, right?  Not really.  How many competitors have already earned your potential customer’s loyalty?  How long will it take potential customers to know you are there?  What can you offer that your competitors can’t?  You know this is a difficult proposition.

In many situations it can be easy, many retailers look at others for advice.  If you know your store has the same demographic profile as say, Wal-Mart, you may want to look for locations near one.  This so-called ‘Wal-Mart factor’ is important to many retailers.  Wal-Mart does substantial research to locate their stores where they can drive enough traffic to ensure massive profit.  If your customers are already coming to the shopping center you have the advantage of a built-in customer base.  Starbucks is another with a similar effect, a different clientele, of course, but consistent traffic in theory.

On the flip side, you may want to steer clear of some retailers. The mere mention of Wal-Mart may make you shudder.  So be sure to know who your neighbors are.  You probably wouldn’t put a knitting supply store next to a local pub scene in a college town.  Actually, I think I read something on Yahoo! about knitting being a new microtrend among 20 somethings.  See what I mean?!  Research is key.

Now don’t go dropping big dollars on a location based on another company’s marketing plan.  You still need to do your own research.  You can still get accurate data on a market without breaking the bank.  What did you say?  Your broker supplies free demographic reports and maps?  That’s great!  You know he wants to close the deal more than you do…just sayin’.

You can always get fast and reliable demographic reports and maps from Research360 and we conduct regular webinars so you can see the platform in action.  Click here to sign up for one or just give us a call.

Stay grounded,

-Rich

rich@geo-e.com

888.848.4436 x4

Focus on: Site Selection

By Katherine Field – http://www.chainstoreage.com/story.aspx?id=129041

( February 1, 2010 ) As store expansion slows, retail site selection activities have decelerated in kind. To keep sales from stalling, most real estate departments have turned their attentions to optimizing the sites they have.

Chain Store Age talked with four retail real estate experts and asked them to provide a watch list of sorts—trends and activities to keep an eye on throughout 2010.

What retail real estate trends, with regard to site-selection/optimization, should we expect to see play out in 2010?

Ivan Friedman, president and CEO, RCS Real Estate Advisors, New York City: Similar to 2009, we’re going to see a number of retailers optimizing their real estate assets in 2010. The result will be more negotiating of existing leases and, in some cases, more vacant spaces at low prices on the market. What this means is that the healthier, growing retailers will continue to take advantage of leasing these vacant spaces at a fraction of the price they would have previously.

In 2009, Bed Bath & Beyond and Best Buy were able to lease the best spaces left behind by Linens ’n Things and Circuit City for pennies on the dollar. Kohl’s and Forever 21 purchased a number of Mervyn’s leases out of bankruptcy at bargain prices. Big Lots has been signing leases in shopping centers that would not consider them before the downturn.

I think everyone was hoping we’d start to see some stabilization in 2010 and be back to ‘normal;’ instead I think we’ll see more of the same activity we experienced in 2009.

Will any new markets come into play for retailers in 2010, or will stores for the most part maintain the markets they’re currently in?

Charles Wetzel, president, Buxton Co., Fort Worth, Texas: There is no question that, for 2010, the majority of retailers have finalized their tepid plans for growth. 2010 will be the year of optimization for retailers within their existing markets. While some will look to new markets (rural or urban), the majority of focus will be on what a retailer can get out of its existing markets.

Fantastic Sams is a great example. The chain of salons has looked at its existing markets (and new markets) and identified how many stores each market can support. From that point, they started aggressively looking for potential franchisees, having already done the real estate homework for the market.

From a shopping-center owner standpoint, what are you seeing for 2010 from your retailer clients?

Robert Spratt, president, Hill Partners Inc., Charlotte, N.C: Those retailers that can expand are now shifting out of renewals and restructure and closure mode, and are starting to look at new site selection. However, as you roll into 2010, what retailers are focused on is existing product. Publicly traded retailers, such as White House Black Market, have promised Wall Street that they will open a certain number of stores in the next year and will look to existing centers to open those in.

We’re seeing in our existing centers an opportunity to lease space, with high-quality tenants that are repositioning or entering the market or adding in the market. But, progress is slow—evolving rather than a sudden spurt of new activity.

GNC reported to us that the limiting factor for their growth next year is that there aren’t enough sites to open the planned 100 stores. Instead, the chain will open 60 to 70 stores rather than the originally planned 100.

How do you predict the climate between landlords and tenants will be in 2010?

Andy Graiser, co-president, DJM realty, Melville, N.Y: Just as in 2009, landlords will continue to be more flexible than they have been in years past. However, 2010 will bring about bigger challenges for landlords, in that lenders may become increasingly aggressive about landlord net operating income requirements.

From a retailer perspective, we will see some growth in 2010, particularly from chains like Big Lots, which is expanding, and of course the dollar guys.

In 2010 we will see more stores open than last year, but it won’t come close to the magnitude of years past.

This interesting data visualization map shows a state by state distribution of wealth.

CLICK TO EXPAND

Mapping Americas Wealth - Click to Expand

For more information on how Geographic Enterprises can assist with a data visualization project please call us.  888.848.4436

Bing Maps has been making some big changes recently and I think this is one of the best yet for the casual user.  Having a party and need to add directions to your pad?  Want to add a stylistic map element to your site?  Bing Maps will now draw it for you.  Click here to check it out.

Bing Destination Maps

Geographic Enterprises would like to hear about your favorite mapping sites.  Please share it with us.  sales@geo-e.com

Interesting article yesterday by Sasha M Pardy on the CoStar site…

Link: http://www.costar.com/News/Article.aspx?id=8F7645E7108D0FD6E881D5428553E0A1

Based on the flurry of reports from a wide range of industry observers, there appears to be growing consensus that the worst may be over for the U.S. economy and that, with consumer spending returning to positive, a retail real estate recovery is in sight, say industry forecasters.

We’re not out of the woods yet, however, these same observers caution. The market should not expect 2010 to end with much-improved occupancy, higher rental rates, a flood of new space completions, or higher property sale prices. Instead, forecasters at Property & Portfolio Research, Grubb & Ellis, Marcus & Millichap, Jones Lang LaSalle and CB Richard Ellis, predict 2010 will mark a return to stability for the majority of U.S. retail markets.

Setting a hopeful direction for retailers’ sales in the coming year, the International Council of Shopping Centers (ICSC) reported that retailers posted a 1.8% gain in sales for the holiday selling period (November-December). While positive, the sales figures are not considered “strong,” but instead as setting a foundation for an expected stronger pace of retail spending in 2010. All-in-all, retailer’s same store sales declined 2.4% in 2009 and for all of 2010, ICSC is forecasting a 3.9% gain in sales year-over-year across all retail segments.

Ever wish your Demographic Data and Mapping service would integrate with Google Earth?  You spend time analyzing data, creating maps, uploading data (you can upload custom data with Research360) and then you do it all over again in Google Earth.  Stop the madness!  Wouldn’t it be easier if you could just click a button?  You can!  The following 4 screenshots will show you the basics.

To request a live demonstration call 888.848.4436 ext. 4 or click here for our online request form.

First, we create a map in Research 360 and click the “Other Views” button.

Map of Petco Park in San Diego, Themed by Median Household Income ('09) -- CLICK TO EXPAND

Other Views Window

Second, choose between Google Earth; Google Maps; Virtual Earth; or Yahoo! Maps.  You can also specify what data you want to bring over.  You can use standard demographics or view your own data.

Once you click OK, Google Earth (or other option you chose) will open and your data from Research360 will be in there waiting for you.

Google Earth - Displaying a Site, Trade Area, Median Household Income Theme and a simple ZIP Code Flash Report - CLICK TO EXPAND

Now you can manipulate Google Earth to display the data the way you prefer.  From here you can really customize the final output with Google Earth’s editing capabilities.  Change the angle of your view, utilize the 3D Buildings (available in several major cities) or dive right down to a street view.

Unique "Birds Eye View" of your Site and Trade Area - CLICK TO EXPAND

If you are interested in learning more about this feature please contact Geographic Enterprises, 888.848.4436 or request a live demonstration today by clicking here.

Did you know that you can cut the entire United States into ZIP Based Territories of Populations of 250,000 in only minutes?  This is just one simple example of how powerful the Research360 Territory Manager is.

Research360 Territory Manager is a web-based solution for aligning territories to improve the return on sales and service resources. It  works with Strategy Map, is simple to use and is scaled to manage territory hierarchies from the smallest to the largest national salesforces.

For more information: contact Geographic Enterprises @ 888.848.4436 x4

To schedule a live demonstration:  Click Here

Or…Watch this quick 97 second video to learn more.