So, what is actually driving the difference? Mostly, it’s between the ears.
Are you following the system? Are you passionate? Are you working hard? Are you engaged in your community? Those things are a bigger indicator of success than the market alone. I’m not going to sit here and say the market doesn’t matter, because it does. But if you put someone who’s engaged, running the system the right way, and working really hard, the first one wins every time no matter the market.
What most candidates get wrong when evaluating territory
The mistake I see constantly is people optimizing for convenience rather than opportunity. I hear it all the time. It is only this far from my house. It is a quick drive. I don’t want to deal with traffic. I want a better quality of life. Those are all things that are important to consider, and I’m not dismissing them. But you are buying a business to make money. So, at some point, you have to ask: what is the best market for this business, not what is easiest for me to get to in the morning?
If I were buying a franchise, the first call I would make is to my franchisor. Give me the top ten markets in this state. Give me the data. Let me work backward from what is actually available and what is actually strong, and then I’ll figure out the logistics.
We’ve had franchise owners move for the right territory, and we’ve even had owners who actively drive past each other on the way to their shops because they both bought the market that was the right opportunity, not the one closest to their house. Spoiler alert they’re both doing well. That’s the point. If your business is not in the right market, all the commute savings in the world do not matter.
“You are buying a business to make money. So don’t you want to be in the best market for the business?”
How Signarama defines a strong market
This surprises people, but for a B2B franchise model like Signarama, we are not looking at population counts. We do not care how many people live in a given area. What we care about is how many businesses there are, specifically multi-employee businesses, not a guy working out of his garage.
Typically, we’re looking for three to five thousand businesses in that range per territory. That is what a good market looks like for a sign company, so we look for areas where this works. But the business count isn’t the only thing we are looking for. We also look at competition, and not the way most people expect. The presence of other sign companies in the market isn’t a red flag to me. It’s a green one. It means there is demand for the product. It means we are not the only game in town trying to convince people they need signage. We are a full-service brand, and we can take market share in a proven market.
Beyond business counts, I want to see construction. New development is great, but redevelopment counts just as much, maybe more. If there is commercial growth happening, retail going up, buildings being renovated, that is a market in motion. That is where a sign business thrives.
The owner’s network matters more than people think
Here is an underrated factor in territory selection: do you already know people there? Our model requires you to build a network. That is part of the training, part of the system, and part of what separates owners who grow fast from the ones who take longer to ramp up. But if you are walking into a territory where you already have relationships, where people already know you, where you have a built-in database to sell into, that is a head start nobody can manufacture for you. If that area is open and the market fundamentals hold up, that is where you want to be.
What owning a market actually looks like
The best example I can give you is Clay Coleman, who has since passed, but whose son Spencer carries on the business.
The first time I visited their shop, it was like a scene out of a movie. I drove into the mountains, pulled in, and Clay walked out and said, AJ, hop in my truck. We drove downtown, and there was a whole event being set up. Booths, banners, everything. It was Swiss Days, which turns out to be one of the biggest arts and crafts festivals in the country.
Clay got out of the truck, and it was just: hey Clay, what’s up Clay, hey Clay. He was the chair of the event. He hadn’t even mentioned to me that this was the busiest day of the year for their shop because they did all the signage for it. People were coming up to him from every direction. Back at the shop, his team was going full speed building everything that needed to go out the next morning.
That is what owning a market looks like. Clay was not waiting for business to come to him. There was not a place in that community he had not walked into and introduced himself. Not an event he was not part of. Not a person he did not know. He owned it.
That is what separates owners who make markets work. They go out and hunt the business. They made sure that the community they serve knew exactly who they were and what they did.
“It wasn’t passive. They went out and hunted the business. That entire community knew that person as the sign person.”
How to choose between two or three territory options
If you have done the work and narrowed it down to a few strong options, here is what I would look at. Start with business counts. Then look at development: is there new construction? Commercial growth? What does this territory look like now versus what will it look like in ten years? You want to be in the path of growth, but not on the razor’s edge of it. You want that middle ground where things are building, but the market is already established enough to sell into it today.
I would also think about what the market means to other people. How does it position you? Is there something about that territory that is marketable that gives you an identity in the community?
And then I would lean on my franchisor. They do not want you to fail. They have seen thousands of locations open, and they have pattern recognition you do not have yet. Use it.
Honestly, if you have done your homework and gotten it down to two or three solid options, you are not going to get it catastrophically wrong. Run the system, work hard, and you will figure it out.
Key Takeaways
- The market matters, but the owner matters more. The most reliable indicator of success is whether someone is engaged, running the system, and working hard, not the territory they are in.
- Most franchise candidates evaluate territory for personal convenience rather than business opportunities. Ask your franchisor for the best markets, then work out the logistics.
- For Signarama, strong markets have three to five thousand multi-employee businesses, existing competition (which signals demand), and visible signs of construction and commercial growth.
- A built-in local network is a genuine head start. If the market is open and strong, go where people already know you.
- When choosing between strong options, lean on your franchisor. They have pattern recognition across thousands of locations that you do not have yet.
Frequently Asked Questions
How do I evaluate a B2B franchise territory before I invest?
Start with business counts, specifically multi-employee businesses in the territory, and look for three to five thousand as a baseline. Then look at development indicators: commercial construction, retail growth, and redevelopment activity. Talk to your franchisor about which markets they have seen perform well and why. Do not optimize commute. Optimize opportunities.
Does competition in a territory hurt a B2B franchise location?
Not necessarily. The presence of other companies shows that there is demand for the product.
How important is it to already have a network in the territory I choose?
Very. Building a local network is core to how b2b franchise models work, and at Signarama we train around it. But if you are starting with existing relationships in a territory, that is a real advantage. You have a built-in database to sell into from day one.
What does it mean to own a market as a franchise owner?
It means the entire community knows you. You are not waiting for leads. You are at the Chamber, the local festivals, and the business events. You are the person in that community everyone calls when they need the product or service you sell. That takes time and consistent effort, but it is how the strongest owners in our system operate.
Should I pick a territory close to home or one that has better market fundamentals?
In an ideal world, both. But if you have to choose, go where the market is strongest. We have owners who drive past each other to get to their shops because they each bought the territory that was the right opportunity, not the nearest one. They are doing well. Proximity to home does not pay the bills. A strong market does.