Oct 7, 2025
Learn how to preview, compare, and export ZIP or postal code boundaries for franchise analysis in Population Explorer.
Exporting ZIP Codes and Postal Codes for Franchise Territories
Purpose
Franchisors, development teams, and brokers who need a reliable way to extract, validate, and maintain lists of ZIP/postal codes that define protected or exclusive franchise territories for use in FDD Item 12 disclosures, sales operations, and analytics. Zip codes and postal codes comprise the backbone of many franchisors attempting to create new franchise territories.
TL;DR
Use postal codes to make territories auditable and machine‚Äëreadable. In the U.S., remember that Census ZCTAs are approximations of USPS ZIP Codes, and outside the U.S. use country‚Äëspecific hierarchies (e.g., Canada FSAs, UK postcode sectors). Export clean code lists (with country and effective dates), dedupe, preserve leading zeros, and log changes so your Item 12 remains accurate over time.
Background: why postal code–based territories matter
Item 12 of the Franchise Disclosure Document (FDD) requires franchisors to describe whether a territory is protected, how it is determined, and any franchisor rights within it (e.g., online sales, relocations). Many brands operationalize territories as postal code lists to eliminate ambiguity, speed sales ops, and ensure consistent reporting across systems.
U.S. specifics: ZIP Codes vs. ZCTAs (and why it matters)
USPS ZIP Codes are primarily mail delivery designations; they are not persistent polygons. The U.S. Census Bureau created ZIP Code Tabulation Areas (ZCTAs) to approximate ZIP areas for mapping and statistics. When defining territories, be explicit: either store the exact USPS 5‚Äëdigit ZIP Code list (authoritative for ops), or store the polygonal ZCTA set (authoritative for analysis). Avoid mixing the two in the same definition.
Best practice is to store 5‑digit ZIP Codes for legal/operational definitions, and maintain a companion ZCTA set for analytics and map QA. Document the source and vintage for each (e.g., “USPS ZIPs as of 2025‑08; ZCTA 2020 vintage”).
International considerations: Canada & UK examples
Canada: Use Forward Sortation Areas (FSAs, first three characters, e.g., M5V) for broad territories; use full 6‚Äëcharacter postal codes (FSA+LDU) sparingly due to granularity and churn. Maintain a country column and note the FSA/LDU level in exports.
United Kingdom: Postcodes are split into outward and inward codes. For territories, brands commonly use postcode sectors (e.g., SW1A 2), balancing precision with manageability. Be consistent about the level you use (area, district, sector, unit) across the brand.
Choosing the right code level for your brand
Pick the smallest unit that matches how customers travel and how field teams operate. For dense metros, combine postal codes with drive‚Äëtime analysis to represent real trade areas; for suburban or rural concepts, ZIP bundles or postcode sectors often suffice. Your franchise territory map represents your market strategy (and will dictate your success in may cases), so set these boundaries carefully.
Export outputs to support legal, ops, and analytics
Recommended file formats:
CSV or XLSX for operations and FDD exhibits
KML or GeoJSON for map exchange and visual QA
A readme.txt with source and vintage (e.g., USPS ZIPs 2025‚ 08; ONS Postal Sector 2024‚Q4; Canada Post FSA 2025Q1)
Minimum fields to include:
Territory_Name
Postal_Code (keep leading zeros)
Country (ISO3166‚ alpha, e.g., US, CA, GB)
Code_Level (ZIP, ZCTA, FSA, Sector, etc.)
Source (USPS, Census ZCTA 2020, ONS, Canada Post)
Vintage (date or version)
Effective_From / Effective_To (optional)
QA checklist before publishing your code list
1) Dedupe codes and normalize casing/spaces (e.g., SW1A 2AA).
2) Preserve leading zeros (store as text in spreadsheets).
3) Validate codes against an authoritative registry (USPS, ONS, Canada Post).
4) Cross‚Äëcheck polygon coverage on a map; inspect borders and overlaps with neighboring territories.
5) Keep a territory change log; update Item 12 if rights/definitions change.
6) Export both the code list and a polygon file for auditability and sales team clarity.
Governance & FDD alignment
Territory rights (exclusive vs. protected), the method of boundary creation (ZIP bundles, drive-time, etc.), and any franchisor carve-outs should be explained in Item 12. When you update territory code lists due to postal changes or network planning, note the effective date and ensure disclosure language still reflects how territories are determined.
Drive-time & postal codes: working together
Drive-time isochrones often reflect true catchments better than simple radii. Use isochrones to design or validate territories, then translate the final shape into a postal code list for legal and operational use. Repeat this process when traffic patterns or store locations change.
How to identify and export ZIP or postal codes in Population Explorer
Population Explorer lets you preview ZIP or postal code boundaries, save them as shapes, and analyze their population, income, and density to identify the most balanced franchise areas.
Step 1 - Add postal or ZIP code boundaries
Go to Folders, open or create the folder where you want to store ZIP or postal code boundaries.
Select New → Create Item → Administrative Boundaries.
In the Administrative Boundary dialog:
Choose the Country where your postal codes live.
Select the correct Boundary Level (e.g., ZIP Code Tabulation Area (ZCTA) in the U.S., or Postal Sector in the U.K.).
Use the map or search field to locate your State, Province, or Region.
Click Add. Population Explorer loads the official administrative shapes for that region.
Select one or more shapes that match your desired ZIP or postal areas.
Save these selections to your folder.
Step 2 - Compare population and income across ZIPs
In your folder list, click the new administrative boundaries you added.
Population Explorer automatically calculates Population, Density, Area, and Income for each shape.
Use these values to compare ZIP or postal code performance and identify the most suitable franchise locations.
Rename or color-code shapes to reflect your selections (e.g., Target ZIPs North Dallas).
Step 3 - Export ZIP or postal code lists
Go to Export → Excel from the top toolbar.
In the export dialog, choose whether to export the selected folder (summary by territory) or individual boundaries (line-by-line postal list).
Click Export.
The resulting Excel workbook includes:
Population, Area, and Density per ZIP/postal code.
Age and Income breakdowns (ASB table).
Territory name and folder references for audit tracking.Internal linking (hub-and-spoke)
Read more about exporting data from PopEx.
Sources (overview)
FTC Franchise Rule, Item 12 (territory disclosure)
U.S. Census: ZIP Code Tabulation Areas (ZCTAs)
USPS: ZIP Code basics
ONS (UK): Postal geographies
Canada Post: FSA and LDU definitions
Esri: Drive-time / Service Area documentation
Frequently Asked Questions
Q: Why use ZIP or postal codes for franchise territories?
A: Postal codes provide a clear, auditable way to define territories that can be shared across legal, sales, and analytics teams. They minimize ambiguity compared to hand-drawn maps and are easier to integrate into CRMs and operational systems.
Q: What is the difference between USPS ZIP Codes and Census ZCTAs?
A: USPS ZIP Codes are for mail delivery and change over time; they don't always have geographic boundaries. ZCTAs are Census Bureau approximations of ZIP areas used for mapping and statistics. Use USPS ZIPs for legal/ops definitions and ZCTAs for analysis and QA.
Q: How should franchisors handle international postal codes?
A: Each country has its own system. For example, Canada uses FSAs (first 3 characters) and LDUs (6 characters). The UK uses postcode areas, districts, sectors, and units. Choose a consistent level across your brand and always document the source and vintage.
Q: What are common pitfalls to avoid when exporting postal code lists?
A: Mixing ZIPs with ZCTAs, failing to preserve leading zeros, not validating codes against an authoritative registry, or omitting country/source metadata. These errors can lead to disputes, misaligned ops, or inaccurate analytics.
Related Resources
How to create a franchise territory
Export your data from Population Explorer
How to identify population trends in Population Explorer
