Franchise Analysis & Market Studies

This area of franchise law is extremely complex. There are 42 states that have specific laws relating to franchised dealership issues, and each state has only a handful of law firms that specialize in these services. Fontana has worked with many of these law firms who regularly seek our assistance in their automobile cases. We are sought after because of our understanding of the issues and the complexity of presenting compelling economic data and analysis that can withstand the scrutiny of a trial.

Site Analysis

Market Potential/Demographic Analysis

While there may always be (manufacturers may always believe there is) room for improvement, what’s the realistic market potential for a dealership?
Will a major investment pay for itself with increased business?
When considering the purchase of a dealership, how much can you really expect to improve over the existing sales level?

The Fontana Group has worked with clients in numerous industries to evaluate critical questions concerning the viability and desirability of business sites. These studies have included optimal location analysis, traffic counts, gravity modeling, retail draw, and demographic desirability. Our professionals have high expertise in understanding, accessing, and analyzing market data used by decision-makers across a multitude of industries.

The Fontana Group has extensive experience evaluating market potential, using analyses that consider the demographics of the market, levels of competition, buyer behavior patterns, and other relevant factors.

Customer segment analysis for marketing or advertising, target audience, consumer or user group, demographic data or profile to target concept, business team analyzing customer segment pie chart.

Market Potential/Demographic Analysis

While there may always be (manufacturers may always believe there is) room for improvement, what’s the realistic market potential for a dealership? Will a major investment pay for itself with increased business? When considering the purchase of a dealership, how much can you really expect to improve over the existing sales level?

Customer review satisfaction feedback survey concept.

Customer Satisfaction Analysis

Customer satisfaction has become a point of emphasis by many manufacturers. While an admirable goal, it has also been used as the basis for discriminating between dealerships, termination, denial of new points, and the awarding of bonuses. We have analyzed customer satisfaction and delved into the critical issues:

Are the responses representative of the customers as a whole?
Are the questions designed properly?
What is the effect on a dealer when its competitors are cheating to get better scores?

We can provide consultation on all of these issues and more, and a white paper we have written relating to customer satisfaction measurement is available for purchase

Franchise Agreement

Dealer agreements are generally one-sided with little or no allowance for operator input. Manufacturers often load agreements with terms that are either vague or knowingly impossible to satisfy. While the legality of the contract can only be assessed by a legal professional, we have evaluated the economic reasonableness of various provisions that manufacturers have attempted to assert in contracts. Some of these terms can have a profound impact upon the well-being or even survival of a dealership.