If you are considering buying a franchise that will have a retail location, then you perhaps ought to consider that old phrase they use to teach in business schools across the nation; Location, Location, Location. But with that said how do you know what is the best location?
Well, there are many strategies to site selection and in franchising its ultra critical, as you want the franchisor wants his franchisees close enough together as to keep the competition from moving in and getting a foothold, but far enough apart as to not hurt each other's business or cannibalize sales. A franchisee needs to keep this in mind also.
Not only is it important to get into a high traffic area, with a low cost rent, and close to your customer base, but you must consider things like parking, signage opportunity, competition, crime and so many other things. This is why I recommend using ESRI software and make sure you have keyed in the most recent data.
If all this sounds foreign to you, then you can always hire a franchise consultant that specializes in site selection to go over this with the franchisor or to verify that the franchisor's site selection team is steering you in the best direction for your franchised outlet's success. This might come as a shock to you, but I've seen franchisors approve really obviously poor locations, just to get a deal done.
You have to be involved in the process, because generally it is the franchisee who lives nearby and knows the area, the City's Master Plan and where the higher-end economic upper middle class lives. Sometimes data can be deceiving and this is why it's best to get a reality check and compare notes. I hope this helps you in your site selection for your franchised business opportunity. I wish you all the best.
0 comments:
Post a Comment