Location is a critical factor in the success of most franchise opportunities, especially those involving retail outlets. Your business franchise can look great on paper but choose the wrong site for your outlet and paper is probably all you’ll be left with. Some franchisors will dictate where you can set up your franchise so as to keep competition between franchisees to a minimum. Others will just give you a general geographical region and leave it up to you to pick the specific location. There are a couple of things that you should consider when doing so.
Lots Of Traffic:
No, I don’t mean lots of congestion on the road. The location of your business franchise needs to be in an area where there are a lot of potential customers. You don’t want to pick too rural an area because you may not make a lot of sales. At the same time, it may not be the best idea to set up shop in the middle of a big city because you’ll have another set of problems to contend with: Where are your potential business franchise customers going to park? Will you space to put up a sign? Is there a competing business right around the corner?
Low Cost Rent:
You’ll have two options available to you if you have to set up your own outlet. You can build your own structure, or you can rent office space. Of course this expenditure means fewer profits so you’ll want to keep it as low as possible. Be careful though. If the rent is too low then it can mean that there’s a problem with the area. Perhaps it is a high crime zone or just an impoverished area. Either way chances are that your business franchise isn’t going to be very successful.
Your business franchise team will suggest areas for you to set up your business, but remember that they can sometimes be more interested in sealing the deal in the shortest time possible. It is crucial that you ensure you are a part of the selection process. Go to each suggested location and take some notes. Look around and determine the kind of people who frequent the area and the presence of any competing businesses. It’s in your best interest to get as much information as you can. Many franchise opportunities have gone down the drain because of poor planning and lack of foresight.