How to Choose the Best Location for your Franchise
You've heard it all before: location, location, location. The old adage is true: setting up shop in the right spot is a key to helping your business succeed. But if you're new to the franchise world, knowing the right spot to choose for your business can be easier said than done. So how can you find the best spot in town to open up shop? We've compiled some best practices to help you do just that.
Think through your franchise
When you're starting to look at locations for your business, the first thing you need to consider is what you're offering and who your customer base is. Here are a few of the most important details you should think about before committing to a particular area:
- Who is your target customer? What are their shopping/dining/lifestyle habits and how does this affect your business? Where does it make the most sense for you to be in location to them?
- Do you need a highly visible location, or will your franchise grow more by word of mouth?
- How much money will you have available to spend on a lease each month?
- What traits of a property will help you be more successful?
Scope out your community
Looking around your area to see what spaces naturally see the most traffic and where your competitors are located is a good place to start. You should also be keeping track of how many types of franchises within your industry are located near the space you're considering.
For example, if you're opening a food franchise, you'd want to look into how many restaurants are in the area surrounding your ideal space to avoid oversaturating the market.
Consider how people will get to your location as well. If it's difficult to navigate driving to your space - or if parking can be a nightmare - will your business be affected? Are the businesses near you going to help bring in more traffic for your franchise? Thinking about what will bring new business through the doors - and keep people coming back for more - is a key factor in your long term success.
Additionally, you should find out what your territorial restrictions will be - and if anyone is able to open up the same brand of franchise near you. Some franchises have geographical space requirements - meaning no one could open up the same business within a certain number of miles of your store. Others do not. Knowing this information in advance can help you better understand where you can and should open up a new franchise location.
Enlist your franchisor
Every brand has their own specific requirements that relate back to what your space can look like and where you can be based. And while you might not know all of these details at a moment's notice, your franchisor will - which makes them a great ally when you're looking for the right spot to open your business. Many franchisors actually have local development experts who are already scouting the best locations for new franchisees to lease space - so they may have already done a lot of the legwork for you.
Plus, your franchisor has a say in where you put your business, and it's their goal to help you be successful - after all, your success equates to success for them - so they definitely want to help steer you in the right direction. Taking a recommendation on where the best location for your business should be can help you drive your own success.
Talk to franchisees
If you have the ability to chat with some other franchisees, do it. Understanding how they chose their particular location and what's been successful - as well as what they wish they would have considered during the set up process - can help you select a better location for your franchise. In this situation, knowledge really is power. By going directly to the people who have experiential knowledge to share, you'll have a better shot at selecting the location that will help your business be the most successful.
Work with a professional
Once you find the right spot, you should work with a professional realtor and attorney to finalize all of the details. Your franchisor can likely assist with this step as well. Working with a professional ensures that no details go overlooked - and bringing in additional resources can help you negotiate the terms of your lease, potentially dropping the amount you pay each month for your new space.
Finding the right location for your new franchise is not something you should take on lightly. After all, the space you choose can be a big determinator of your future success. Taking the time to research your options and gain knowledge from those who have been in your shoes is a great way to find the perfect spot for your business.
And if you're looking for the best franchise to open up in your area, we can help! Check out our current opportunities to find a great option near you!
By Jason Hightower | Oct 15, 2017 | Food Franchise Blog