Finding a great location is key to starting any business, and franchising is no different. In fact, depending on the circumstances, it can make or break the success of the franchise location in question. Therefore, it helps to consider a few tips before breaking ground on your franchise location.

Doing so will allow you to cut down on costs, increase your location’s reputation with the locals at a quicker rate, and move into profitability far sooner than normal. All it takes is adherence to the following tips in order to stay the course, and make it happen.

 

IDENTIFY YOUR CUSTOMER BASE

You can’t set up a successful franchise without knowing where your customer base is located. Therefore, it’s good to do some due diligence to learn where the money is at. Starting a restaurant franchise in a deeply rural part of the countryside would obviously be a bad idea. However, adding it to a downtown hub near a major automotive artery would yield far better results.

Another factor to consider is parking space. A lot of customers wish to dine in, and if they can’t find parking, it could create a negative effect. Takeout is always an option, but try to prioritize in-house dining on equal footing in order to draw customers into your establishment and generate some great word-of-mouth advertising.

 

NEGOTIATE YOUR LEASE

Many would-be franchisees are eager to cut ground or lease a building, and are quite ready to sign on the dotted line of the contract. This can be a wasted opportunity that can cost you in the long run. When dealing with leases, make sure to have your attorney review them beforehand so you can identify any problem issues.

Also, don’t be afraid to negotiate. Many landlords will produce a first draft of their contract with everything they want in it, and it’s your job to haggle and come to a healthy compromise. Your attorney can assist you with this portion of the process as well.

 

CONDUCT PROPERTY RESEARCH

You may have found what you think is the perfect spot to launch your franchise, but have you considered what the area will look like in a few years? This can go one or two ways – either the area blossoms and more businesses come in that compliment your franchise location and bring more customers through the doors, or it can be smothered by large-scale property projects like condominiums.

Try to figure out if the city has greenlit any of these projects near your location so that you can decide how best to move forward. The last thing you want is for your franchise to turn invisible to your prospective diners.

 

IDENTIFY COMPETITORS

Competition is healthy, even in close quarters, but be mindful of what you’re going up against before starting up a franchise location. It’s fine to compete against restaurant franchises, but how many of them offer the same food as yours? Over-specialization in any area is a recipe for trouble, and two similar franchise locations could cut into each other’s business.

Instead, identify what your competitors are selling, and see if your restaurant franchise offers something different. Not only will this keep the available offerings compartmentalized, but it will also give customers more choice on what to eat. Soon, your area could become a bustling foodie hub.

 

ASK YOUR FRANCHISOR

When in doubt, talk to your franchisor. Their head office has lots of experience breaking new ground in different locations, and they’ve come up with a lot of tips and tricks over the years to help you identify the right area to open a new location.

Remember, your success is their success, and this mutual partnership means that both are interested in making a proper go of it. Your franchisor can help you navigate the waters when it comes to opening a location, giving you the tools you’ll need later on if you wish to open up multiple locations. 

 

CONCLUSION

Starting a restaurant franchise is an exciting endeavor, but sticking to the above points will help you get on your feet faster, and start building that reputation your customers will love. From there, it’s your choice where you’d like to take your franchising career.

Interested in opening up a brand new St. Louis Bar & Grill franchise location? We’re expanding all over, including the United States, and now’s a great time to jump on board and join our franchising family. Contact us today for more information!