How are territories determined or delineated?

Our franchise territory boundaries are decided upon mutually by our owners and our management and support teams. Territories are typically delineated by zip or postal codes grpuped together into a manageable area that is large enough to facilitate steady growth, yet not too large that you lose efficiencies. The initial franchise fee is based on the total population of the area and ranges from $17,600 for territories with a population of 140K or less, and up to $65,000 for one or more territories with with 1mil. cumulative population or more. The average frachise fee is around $22,000 for a population base of 200K.