5 Key Tips to Choose the Best Location for Your Franchise

You’ve always wanted to start your own business, and instead of starting completely from scratch, you have your eyes on a great franchise.

The entry costs are low, the franchise owners seem accommodating, and you know the business. You’ve lined up financing, have employees ready too, but the key decision regarding your business location is looming.

o help you find the best spot for your new franchise, you may want to consider the following:

Where is Your Target Customer?

If your target customer lives in the suburbs, you don’t want to put your store downtown. Likewise, if your prospective clients spend a lot of time in the central city, you shouldn’t locate your franchise on the outskirts of town.

For example, let’s say your customers are people who live in an expensive downtown area like Denver, Colorado; well, then it makes sense for you to look at franchise locations in the Denver city area.

Place your business where it is easiest for customers to reach. Also, make sure that there is ample parking available. Be careful about relying only on nearby parking structures because anything consumers deem as inconvenient can cost you traffic.

Be Careful of That Lease

Commercial leases can be onerous, and many experts recommend not signing one before your attorney reviews it.

Big landlords will likely hand you a lease that is most favorable to them hoping that you will just go ahead and sign it without asking for revisions. Many of the terms can be negotiated, but you’ll never know which ones until you consult with legal counsel.

The Franchisor Can Help

The franchisor wants you to succeed. It really is in their best interest to help you. Having gone through the location process previously, franchise companies can help you analyze demographics to help decide exactly where to put your new business.

Of course, you need to use your local knowledge and gut instincts but do utilize the resources provided to you by the franchise seller.

Research Future Viability

When researching a location for your business, it is important that you think of the future and not just the immediate.

This simple anecdote is just one reason why: Joe bought a sub shop franchise in a college town. The location was great, and he got a very favorable lease. What he didn’t know was that a big developer had plans to build a 30-story high rise next to Joe’s small free-standing leased building.

The construction chaos and the resulting area configuration made Joe’s spot virtually invisible and his business failed.

Do your research and make sure you are aware of any public or private plans that would impact your spot!

Competitors

You may think that you have found a great location for your independent pizza place and you have a great business plan as well, so a university area with lots of walk-in traffic and plenty of delivery opportunities would be ideal.

The rent is cheap, the location is on the main drag, you can sell slices, deliver pies and even do some office catering. What could be wrong with that? Before you make the move, however, check to see how many other pizza outlets there are in the area.

This sounds like simple advice, but many first-time franchisees can be blinded by a great location and subconsciously ignore some obvious negatives!