Ideal Franchise Location Brings Franchise Success

By: Jason Rager - Franchise Consultant and a successful Multi-unit Franchisee

 

How important is choosing a franchise location in the process of starting a business in franchising? The franchise location is a very important factor in bringing profitability and success into your chosen franchise opportunity. Imagine a business being situated in an isolated place where only few people live or a business selling very expensive goods or services within a community where the median household income is very low. Do you think these businesses have the chance to prosper if existing under these circumstances? This is very critical for a site-based franchise system. This is the reason why almost all franchisors impose site selection criteria to avoid putting the franchise in a precarious situation. Armed with extensive franchise experience, the franchisors have the edge in determining the viability of a particular area. The franchisors have already identified the important things to be considered in choosing an ideal franchise location. How do you know that a certain space is ideal for your franchise location? If it meets the site selection criteria in a level that is likely to produce the best result and if it can be acquired at the right cost, go for it.

As a franchise guide to prospective franchisees, here are the typical site selection criteria for consideration. Accessibility and visibility are among the key factors to be considered. Make sure that your franchise location can be reached easily and bear in mind that consumers prefer to go to nearer stores than to the distant establishments. This explains the situation why properties in highly-populated areas are expensive. If your franchise location is easy to find, it has a big potential of attracting a number of walk-in customers. Another criterion is the population base or the foot traffic. How close is your franchise location to your target customers? Do your target customers find your franchise offering affordable and useful? Are your products or services always available? Are the transportations and foot traffic in your franchise location enough to generate customers? Are there competitors around? Do the people pass through the area regularly? These are just some of the questions you should be able to answer under this criterion. Included in the criteria is the business functionality. Do the space size and lay-out meet the operational requirements? How about the facilities of the area like enough parking space, clean and functioning restrooms, continuous supply of electricity and reasonable number of electrical outlets including the corresponding safety measures? Evaluate the condition of the space. Is there a need for a new construction or just renovation?

Inasmuch as the prospective franchisee is usually expected to do the legwork in looking for the ideal franchise location, the franchisors have the right to approve it. Once you have found the optimal site at a reasonable price, you have found your ideal franchise location. Once you have found your ideal franchise location, you have found your gateway to franchise profitability and success.