Certain types of franchise businesses rely heavily on their location for success. Franchisees considering investing in location-based franchise opportunity should carefully consider every aspect of an area before they decide to place their business there.
Food franchises are a great example of location-based franchises that rely on constant traffic of customers and easy accessibility to be successful. In many cases, the franchise company offers assistance to franchisee in the location search and selection process because it means the difference between failure and success for the franchise.
The franchising experts at Franchise UK believe that the location of a franchise should be is as important as the location of a house. There are plenty of considerations to be mindful of when you search.
Franchisees should be aware of factors like the budget, the demographics, the infrastructural needs, the accessibility and the security and reputation of the area like would if you were considering residing in the area.
Consider Your Needs
It is easy to believe that you will follow wherever the opportunity leads you. This is not always the case, the franchise will be your business, and therefore you should think about your lifestyle, how the franchise fits into it and be mindful of its location.
It is unlikely that you will be willing to move across the country to start your business, as the owner of your franchise your responsibilities may include opening and closing the store so are you willing to take a long commute back and forth. Even if you are investing in home based franchises or van based franchises be mindful of your needs.
Follow The Location Selection Criteria Provided By The Franchisor
Most, if not all franchisors will specify the selection criteria of the franchise so play close attention to it and stick to standards as much as possible because they will give you the best chance at success.
Look at these tips to make a franchise successful away from major cities. There is a reason why the franchisor has developed and set it in the first place. It is most likely tried and tested on other franchises UK.
Form A Team
Besides setting the criteria, some franchisors also provide guidance and assistance for the selection of the location, so make them your ally.
The team that will help you identify the right location and even the right property should include your franchisor, a professional hired by them to give their expert advice and a real estate agent who specializes in the areas you are considering.
Take their advice on the matter. It is most likely that you will require the consent of the franchisor on the location as a part of your franchising agreement.
The Economic Trends
Another significant consideration that should not be missed is learning about the economic trends of the area. Look into the most recent economic and financial data, learn about the new businesses that have opened, find out the direct and indirect competition you might face and their products and services.
Due to the reason that you will be running a business there, all these factors will have a significant impact on the health of your business.
When considering locations remember your budget and think about how much you can afford to pay because rent is an expense that will eat away your profit. Fight the temptation to splash out on an expensive property in a desirable location that is popular even though it will receive a lot of traffic and catch the attention of customers.
You must remember that as new franchises UK, you will not be making a lot of money initially and it could take six months or more for the franchise to turn a profit. New companies need to be mindful of their overhead expenses. Spending too much money on rent early on can cost you and your business.
Any location that you consider for your franchise should complement the image of your brand. This compatibility will help your franchise attract the right type of traffic and will supplement your marketing and branding strategies. A low-cost franchise that targets the young middle-class crowd should not be located in a posh location.
Ask Other Franchisees
Other franchisees are a great resource of information and learning for anyone who is considering investing in a franchise. You can learn a lot from their experiences, and the information you gather from them can help you avoid the common mistakes and pitfalls of franchising.