5 Tips on Choosing a Successful Franchise Location

Franchising isn’t just simply a matter of buying one and then managing it immediately. It requires careful planning to ensure optimal success. Many franchisors are more successful than most because of the branding and product or service and a well-selected franchise location. But how do you choose an excellent location for your franchise? Here are five tips.

What to Expect When Choosing a Location?

• It can take months to select an actual location because of the costs and logistics involved.
• Some franchisors can grant you a protected or exclusive territory. In this case, you will not compete with other franchisees. However, if you don’t have this, expect competition from different franchises.
• Opt for non-traditional stores or restaurants to manage smaller locations, like kiosks. If your franchisor offers trucks, you need to check laws or regulations on where you can sell items in your truck.

Five Tips on Choosing the Best Franchise Location

1. Observe The Community

It sounds like what a stalker would do, but a franchisee should know the community first and foremost before setting up camp. After all, would the community be the ideal target market? Or do they have a need for it? Learning more and observing your community can help you understand people better and their needs.

For example, if you notice a lack of restaurant franchises, you can start a quick-service restaurant in town. If an automotive franchise is needed, you can set one up there. If you know the community and what it needs to thrive, your franchise can become successful there.

In addition, this is where you can learn about foot traffic. Do most of the population walk around to buy their items or purchase services? If you know about foot traffic, you can see if it’s sustainable to start a franchise there.

2. Know What is Visible and Accessible

When choosing a location for your franchise, you must also take into account nearby buildings, signage, streets, highways, and more. You don’t want your location to be drowned out by these other structures. But knowing what is also visible will help you understand how your customers will get to your site.

Another thing to consider is accessibility when choosing a franchise location. Here are some questions to ask yourself: 

• Would the store or restaurant be walkable? 
• Is there a parking space nearby?
• Are there residential and other commercial spaces nearby?

Also, accessibility can refer to those with disabilities, when starting a franchise. Make sure there are accessible entrances and other facilities to make it easier for them to visit your site.

3. Learn The Cost

You might have found the best place to set up your franchise. But you learn that it’s steeper than you expected. Knowing the cost before choosing your location will help you understand how much you need to save or if it’s worth setting up your location in. Remember, you have franchise funding options. However, if you’re using these funds for other purposes then, you might have to survey another area.

4. See Who Else You’re Competing With

Are you choosing a franchise that isn’t as popular as McDonald’s or Popeye’s? That shouldn’t be a problem since you want to introduce the public to other businesses. However, if you’re competing with bigger brands in the area, you can reconsider your options. But if you think your franchise has what it takes to take on these big brands, let your franchisor know. After all, you don’t want the franchise to fail. At the same time, you want more customers coming to your store.

5. Ask for Help From Others

Selecting a franchise location shouldn’t be a solo endeavor. If you have a franchise partner, you should discuss and agree on the best franchise location. However, if you are solo but have a professional team, you can also consult with them. For example, your bookkeeper or accountant can give you an idea of how much the rent and expenses would be. You can ask your lawyer about the lease agreement. Plus, you can ask other franchisees regarding the location too.

An Alternative to Choosing a Location

If finding a location is stressful, but you still want to franchise a business, the ideal alternative is a work-from-home franchise business. 

You don’t have to worry about location anymore. You can store your equipment and tech at home. Plus, you can either outsource your work to employees in the comfort of your home. Or your employees don’t need to report in a physical office. You can send them a text or message them through an employee chat app.

Final Thoughts

As the franchisee, you can select or recommend a franchise location. At the end of the day, the franchisor has the final say on the location and if it’s a protected territory or not. When choosing a location, make sure that your target demographic is present. Plus, it can stand the test of time. However, you don’t have to stick with traditional options. You have non-traditional ones and a work-from-home alternative.