There are several important aspects of opening a new franchise, but perhaps none as important as choosing the best site. Some studies have even concluded that poor location is the top reason that a franchise will fail. Other factors such as the marketing budget and the size of the store will affect success, but it will likely not be as crucial as the site selection. That’s why we’re taking a closer look at just why location matters so much and strategies you can employ to ensure you select the best place to grow your franchise.
Why Site Location Matters for a Franchise
There are several reasons location matters for a franchise. Good visibility from primary roads is one of the first reasons selecting the best location is crucial to success. If customers can’t clearly see your business or if it’s difficult to access, people will likely choose to go elsewhere for the same product or service. It’s also important to balance the cost of rent against potential revenue when deciding on a location. Co-tenants, nearby competition and construction requirements are all aspects of why where a business is located matters. An in-depth site analysis that takes all of these factors into consideration will be necessary in order to make the best decision regarding a location. Finally, it’s critical to understand the laws regarding owning a franchise.
Strategies to Choose the Best Location
After understanding why site location matters, you need to apply each of these aspects in relation to the needs of your business. The first step is to work as closely as possible with the franchisor when studying the demographics at the location you hope to start the franchise. When and how will customers interact with this particular business? A daycare center will normally be busiest early in the morning and later in the afternoon while a restaurant will see increased traffic during lunch and dinner. These are the kinds of questions you need to ask yourself. A business that relies on impulse buying will need a location that is highly visible. Clothing retailers and restaurants often rely on high visibility while it wouldn’t be as important for a fitness center or daycare that relies on a regular customer base. Is there an anchor store in the same area that could draw in extra business? That same popular anchor store may simultaneously reduce the number of parking spots available to your potential customers. All of this should be taken into consideration when considering the benefits of being in close proximity to such an entity .
Legally Protect Your Business
If you are looking to buy a business, start a business, franchise your business, protect your ideas or brand, obtain a visa to work in the U.S., or protect your future, our law firm is the best possible choice. Please contact us today! The team at Shelton Law & Associates is always here to answer any questions that you might have.