4 Important Tips for Choosing a Franchise Location
Franchising offers the opportunity of hitting the ground running rather than building a business up from scratch. You do not have to worry about developing effective business plans or building a brand name. The franchisor is responsible for the grunt work. But do not see a franchise as a turn-key business where you open up your doors and do nothing else. One crucial thing that makes it all come together is choosing a franchise location any brand.
This is something that a franchisor will not offer to you on a platter. A good franchisor will work with you. But you need to think out of the box and be responsible too. Remember that it is a franchise and that you are not the only one they would be helping out. Over 50% of franchisees fail in the first few years of operation because they settle for a location that is not so great. You should avoid been a statistic. Here are important 4 tips for picking the perfect location for your franchise.
Your Location Depends on Your Business
What type of business are you operating? If your business does not require plenty of traction, you can work from a warehouse or even your home. However, if you are running a business that requires plenty of traffic, you need to find an area with plenty of visibility. This means you should be considering areas close to malls or shopping areas with local residents or workers. If your business depends on the workforce in the area, you might need to create your business hours after their own work hours.
Work With Only Experienced Franchisors
Experienced franchisors will always provide you with the information required to start your search for a great location. It is really in their best interest to research and have marketing information available for their franchisees. This goes a long way in determining if the franchise succeeds or fails. Many franchisors have people consistently looking for viable locations for potential franchisees. They know which building will soon be vacant and develop cordial relationships with landlords too. Needless to say, you do not need to see a house wear the “for rent” sign before you know it is available.
Be Responsible for Your Business
In as much as the franchisors are helping you out with the perfect location. Do not leave it all up to them. You should seize the initiative and show some responsibility towards the business as well. Drive around and look for business targets with potential. If your business is targeted towards children, look for playgrounds or schools in the neighborhood.
Check out the city engineers, police department, local chamber of commerce and transportation department. Here you will find valuable information about traffic numbers, demographics and even commercial areas that are being developed. You can also liaise with real estate developers, zoning and planning boards and the good folks at city hall. Keep an eye on the business people in areas that tickle your fancy too. It gives you an idea of what is thriving and what is a bad idea.
You need to fully understand the concept of franchising if you really want to get ahead. Do not jump into it because you think handling a franchise is easier than building a business from scratch. You need to work closely with your franchisor and figure out answers to these questions.
- Who are the target customers?
- What type of traffic drives customers to the business?
- Where do they live?
- How and when do customers interact? Do customers come to you or you go to look for them?
- Is there ample parking space?
- Where are your competitors? Are they closer to your target customers than you?
- Can you really afford the location?
The process of getting the right location can be time-consuming. But it is all worth it in the end. Try not to cut corners. If you see a location that you like that is not available, talk to your franchisor for a time extension or some assistance if possible. If you still cannot find a location that suits your franchise, change your market. Never settle for a second-rate location that does not tick the right boxes.
By: Alam Qureshi is Broker of Record with ProClient Brokers Inc., Brokerage. To know more about Franchising, Selling your Existing Business or Buying an Established Business for Sale in Ontario, call us 416 364 5550 or CONTACT US to get in touch.