Choosing a site is the next step in purchasing a franchise. Identifying a place for a retail franchise requires finding the appropriate fit that fulfills your customers’ expectations, your requirements, and the demands of your franchisor. Once you’ve determined your niche, the next step is to narrow the field of potential locations down to a manageable number.
There are additional prospects for new franchisees due to the pandemic-related business issues. Although more sites are available, not every location will meet your needs as a franchisor and your consumers’ needs, so be careful in your assessments and make sure each venue satisfies the requirements of everyone concerned.
Choosing a franchise was in part dependent on the success of the franchisor and the assistance they provided you. As part of their support services, many franchisors will assist their franchisees in finding the correct location. Having been in the business for long, they know the company and what makes for a successful site. This experience helps them make sensible recommendations to their franchisees.
In addition, franchisors can get very competitive commercial real estate leasing rates for their businesses. The franchisor’s role will be to examine profit estimates based in part on the location and the overhead costs. A high-traffic site may not be a viable option if the landlord gets all the money and you, the franchisee, get nothing. A franchisor can estimate the financial picture for each conceivable location, which is critical to profit.
Most franchisees want to launch their businesses in their communities. You may have a degree of insight that a franchisor does not possess. As a local person, you have a greater understanding of the area’s geography than a corporate franchise does. Your expertise is critical in the site selection process, from avoiding dangerous places to understanding which retail complexes are difficult to access or depart.
Present the franchisor with a place you believe is ideal. Consider other possibilities and let the major players crunch the data if you have it. It’s up to you to ensure that it works in your area and meets your specific requirements.
We all have our favourite dry cleaners, accountants, and restaurants that we turn to when we need something done. It is up to your clients to tell you whether you are their favourite seller. The most fantastic service may not be able to compensate for a wrong location. Customers may never discover you if your business is too distant from the city’s centre.
Sometimes, parking hassles or access to your business isn’t worth it if you’re too entangled in the city’s hubbub, regardless of how many clients adore you or your business. Finding a location for a franchise that meets the demands of both parties isn’t always straightforward. When it comes to making a decision, you need to put in time and patience.
Just when you believe that you’ve found the ideal place, a landlord may decide to raise some issues, making things difficult for you. Contractors may have supply challenges, delaying your opening, even if you have the perfect site. If you’re patient and meticulous in searching for the ideal location for your new franchise, you’ll discover it.
When setting up a franchise, there can be numerous challenges, but proper planning goes a long way in mitigating these issues. Always conduct research, do sufficient groundwork and ensure that you associate yourself with a credible and established brand. It’s a good idea to scout various locations at different times of the day, week and month. This exercise will give you a better idea of how much footfall a business gets at various times.
Although this is not a foolproof method of determining the success of a particular franchise based on location, it can give you an idea about whether a business does brisk business or not. It is one way to hit the ground running in your new business venture. You can also discuss these aspects with other people you might know in the field and get their input before taking the plunge.
If you want any more franchising information, contact the experts at The Franchise Institute. You can call us on 1300 855 435 or fill in this contact form, and one of our experts will contact you as soon as possible to answer all your questions.
Thanks for reading,
The Franchise Institute Team
1300 855 435