Selection of the right location is one of the most crucial decisions while opening a franchise. Providently, most of the franchisors support their franchisees in finding the most profitable and appropriate location. Even if you confer with business consultants, they will suggest choosing a franchise location carefully.
For choosing a correct location, you will have to emphasize on various factors like traffic in the given area, shops/franchises, competitors, availability of potential customers and other aspects of the location. As an instance, for a restaurant franchise, the potential location is near the offices/colleges from where you can get continuous customers.
It is important to discuss the primary elements for opening a store and they would refer to the location. Setting a franchise in the most appropriate location will lead your business to success. And thus, if you are new to franchisees, the business consultants suggest learning a lot about location selection.
The location of any franchise can be considered as a valuable asset for the business. Once you find a potential and promising location, half of the task is done. The process of identifying a location requires in-depth analysis and study. As an example, for an apparel franchise business, you would need a lease, franchisor support and much more.
Footfall of the Location
It is immensely important to consider the footfall of the area. It should be as per the requirements of your franchise else your business might turn unhelpful. Especially for franchise business, you would need a spacious area if you have a larger footfall.
Commercially Potential Area
Commercial potential drives the success of any franchise. Choose a location that seems profitable and commercially practical. For franchise, you will need a place that’s highly visible. Nothing in the business will strive if your location is not doable.
Identify the Sales-To-Rent Ratio
This analysis will simply help you make a strong and certain decision about the location. A lot of people believe that choosing a premier location will lead to extreme investment but, keep in mind that the sales to rent ratio of the location should not go beyond 10% of your sales. You can discuss such factors with your business consultant or franchisor if you are completely new to franchising.
Either you choose an apparel franchise business or restaurant franchise you will need an adequate parking space for your customers to park their vehicles. A lot of times, customers avoid visiting some stores just because of parking issues. You can lose some potential consumers due to parking issues and thus, keep this in mind while choosing an area.
Accessibility of and Materials
Every franchise would require some and tools for running the business. It is crucial to find a location from where you can get all the utilities easily. As an example, if you are choosing restaurant franchise, make sure that grocery stores and vegetable markets are closer so in case you fall short of anything, you can get it quickly without making the customer wait.
Support from Franchisor
If you are still finding trouble in choosing the correct location for your business, contact your franchisor. The franchisors generally have detailed knowledge from their experiences and thus, can guide you better.
For choosing a profitable and potential location for your business, these are the basic and very important aspects to keep in mind.