Franchising is fast becoming the preferred business option for many entrepreneurs. Not only do you have the safety net of working within a well-established network, but also become your own boss and build a solid financial future.
Franchise businesses carry much lower risk compared to any other business that needs to be built from the ground up.
While this may seem like a very good option for a budding businessperson, even a franchise business requires dedication, persistence and a lot of hard work if you turn it into a success. You would want to take every possible measure in order to succeed in your venture. But like most other businesses, in a franchise business too, location is everything.
The perfect location for your franchise can be the difference between success and total failure. Thus, having a comprehensive strategy in place to ensure you pick the ideal location is crucial in a franchise.
Take a look at some of the things you can do to choose a good location for your franchisee business:
This is one of the very first things that you’d need to do when choosing a new franchisee location. Different franchises will be more profitable in different locations. For instance, if you have a restaurant or patisserie franchise, it will thrive near a business district, but you’ll have to fork out a higher rent in this location. This type of a franchise depends on high visibility in order to get more foot traffic. If your business is a cleaning franchise or some other one that doesn’t really rely on walk-in business, you can opt for a less-populated area and pay lower rent.
Every city and town will have specific laws related to how businesses can function. This is why you need to be fully aware of all the permits, taxes, legalities and expected business practices in a particular area before deciding whether you want to set up your franchise business there.
It’s vital that you have information about the demographics in a particular area before you finalise the place where you will set up your business. This information may not be very easy to assimilate. In this case, you should consider hiring the services of professional company to gather all this information for you. Having a very clear idea of the demographics in the area where you are looking to open a franchise will help boost sales and profitability. Knowing the social structure and statistics relating to the various ethnical groups and the overall population there can help you zero-in on the customer base you need. This information will also help you steer clear of areas where the customer base would not be of any value to your franchise business. Being prudent, careful and thorough with researching the location and all the other aspects we just discussed will help you pinpoint a location that will help your franchise business thrive.
Most franchise networks will also provide support and advice when it comes to choosing locations etc. Their knowledge and experience can prove to be invaluable in helping you make a more well-informed decision. The long and short of it is that when it comes to franchise business, location does matter and this something you need to prioritise.
If you want to know more about franchising, feel free to get in touch with us at The Franchise Institute. You can call us on 1300 855 435 or fill in this contact us form and we’ll reply as soon as we can.
Thanks for reading,
The Franchise Institute Team
1300 855 435