Many franchise owners find that selecting a franchise location is one of the hardest tasks related to opening a business. With over 4000 franchise locations opening in Canada every year, selecting the perfect location is vital to your franchise’s success- it can make or break your company. The key is to conduct a sufficient amount of research prior to your selection in order to make the best pick. The following is a list of things to be aware of to ensure that you are making the smartest decision.
- Go To Your Franchisor For Guidance
Entering the franchise world helps you acquire a business with the necessary support. Most franchise companies seek to help their franchisees as there are common interests. Your franchisor will help set out criteria for your location and can even help in the negotiation process. The franchising company acts as a mentor, take advantage of that by asking various questions from real estate to lease documents.
- Knowing Your Target Market
Having a thorough understanding of your franchise and the target market will help narrow down the location choices. You must ask yourself who is your target market? Where do they live, where do they enjoy spending and what will motivate them to come to your franchise. Do you gain more from being inside a mall? Do your customers spend more time in or out of the city?
This profile is the first step to a prosperous franchise location as it allows you to understand what you’re looking for.
- Make Sure Your Location Is Accessible
Accessibility should be on the top of your list for your franchise location. Having a location which can attract new potential customers while still keeping the returning customers is the overall goal. Consider factors like parking, centralization, entrances and accessibility by transport in your list of criteria. You want your customers to arrive without a hassle to quickly reach your location.
- Conduct Tests, Research & Envision Yourself There
Just because a certain location might have that perfect charm, doesn’t mean it is perfect for your franchise. In order to understand whether your business would fit in that location, it is important to envision yourself there by doing manual tests. Analyze the location, floorplan, sketch out a design of your furniture and decor to genuinely obtain a feel of how you would belong there. Next, perform traffic counts on the location. Spend a sufficient amount of time in that area and see how many people are naturally driven to that location. A thorough analysis of the location will also include : traffic patterns, demographics, prior tenants, and neighbouring tenants.
- Pay Attention to The Minor Lease Details
When negotiating the terms of a lease, things can get complicated and tricky really fast. Benefit from the franchisor and their legal team to help set you straight. Make sure you go over all fees and conditions in order to omit the possibility of hidden surprises at the end. With the help of the legal team go over signage, space configuration and all costs associated with the lease.
Investing into a franchise location helps you grow the Canadian Franchise business, which is already 2nd in the industry, only behind the U.S according to Franchise 101. When choosing the perfect location, it is important to be proactive, to seek help and to be analytical. These skills will help uncover the best fit and will help avoid any potential obstacles such as hidden fees. Don’t forget that the biggest benefit from a franchise business is the support from the franchisor, use it.