How to choose the perfect location for your franchise
Franchise location is something that can usually be overlooked when it comes to buying a franchise, but this can often be a huge mistake. Of course, other aspects of buying a franchise are important such as franchise fees, royalty fees, training & marketing, but the location is very important too since if you buy a franchise even with a high success rate and good track record, how can you expect to draw in the customers? If you are thinking about buying a franchise but are not sure what to look for in a location, then don’t worry; in this article, we will cover all the points around choosing the right location for your franchise.
This may seem a pretty obvious point, but it would surprise you how many people buying a franchise do not consider the accessibility of the location. For example, is your preferred franchise location easy to find? Or do you think people would miss it? It’s crucial to have a franchise location that is easy to find and accessible to attract as many potential customers as possible since more customers will lead to a much faster return on investment.
Traffic in your chosen location
Is there high traffic in your chosen franchise location? Also, is there a continuous flow of traffic or people walking past where your preferred franchise business is located? Another vital factor to consider is parking. For example, if you own a takeaway franchise, you would want parking nearby where your franchise is located. This way it’s more convenient for your customer base to pick up their food and go, allowing you to make more sales of your products or services.
What kind of area is it?
This is another significant factor that will make or break your franchise business. What is the area like for the kind of business you are? For example, if you are an expensive restaurant, you would prefer to buy a franchise in a more expensive area. Even though this will probably mean a higher franchise fee, it is very much worth it if you succeed, but this goes both ways. If you are in a cheaper area, this is sometimes a tremendous advantage depending on your services. For example, if you are a cafe, you will catch everyone getting a coffee on the way to work. This is especially beneficial if the lower-cost area has a large population. However, if you are more of a fine-dining restaurant franchise, it’s better to buy a franchise that is perfectly targeted to your potential customer base.
What is the competition like in your preferred franchise location?
This is by far the most critical factor in choosing a franchise location; it’s crucial to research the local competition. For example, if you are the only one or well-known brand offering dog grooming services in your local area, you are most likely going to have the market share in your chosen franchise location, but if you have many competitors that have built very trusted and reputable businesses in your local area most customers will not give you a chance since customers prefer what they are used to and if that business is providing them with a satisfactory service each time they will stick with that business whether its a franchise or not.
We hope this helped!
As you can see from the points listed above, franchise location is a significant factor that can make or break a franchise business. We hope this article has helped anyone looking to buy a franchise but struggling to decide which location would be ideal for their business. If you would like to learn more about franchising before investing your hard-earned money, that is very understandable. The best place to start your franchising journey would be to read our free resource of franchising information on our website. This should help you learn the basics of franchising and why franchises are becoming such a popular option for aspiring entrepreneurs.