Starting a franchise comes with numerous benefits over starting your own business from scratch. For example, you can take advantage of name brand recognition, franchise-based marketing, proven products or services and more. While opening a franchise can be lucrative and can take some of the stress out of starting a new business, there are some critical factors that can increase or decrease your business’s likelihood of success. One of the key factors relates to the location where you choose to open your franchise. When you are selecting a location, consider these points.
The Cost of Rental Space
A key factor to consider when selecting a location for your franchise is the cost of the rental space. This will be a major component in your overhead. When rental space is too expensive, it can erode away your profits. This can detract from your ability to invest in marketing or to take other steps necessary to grow your business.
The Amount of Traffic
Another factor to consider is the amount of traffic the area receives. Your real estate agent or potential landlord should be able to provide you with some information about this. This may include vehicular traffic, pedestrian traffic or both. While your franchise may benefit from a lot of traffic, visibility will play a role in this as well. Your landlord should allow you to have a great location for signage. The type of traffic that passes by your location ideally will largely consist of your target audience. For example, if traffic is mostly commuters passing back and forth to work but you are running a kids’ toy story, the location may not be ideal.
The Types of Businesses Nearby
Another point to consider is what types of businesses are located nearby. Some businesses may be direct competitors, but others may be complimentary to your business activities. For example, if you are opening a burger joint, being across the stress from another burger joint is not ideal. However, if you are the only burger joint located close to a movie theater or many retail stores, this can be far more advantageous for your business.
If you are interested in opening a franchise, take time to thoroughly research the location options carefully. The cost of real estate, the traffic and the competitors can all vary from location to location. In some cases, choosing a rental space that is just down the street or around the corner from one that you may have your eye on can be far more advantageous. By researching the options thoroughly and by focusing on each of these points as you compare the options available, you can make a decision that is most beneficial for your new franchise business.