Some locations may look as though they were a perfect spot for a franchise to operate in, but further investigation may prove otherwise. Others may look as though they were the last place one would want to be located, but again looks can be deceiving.
So how do you know which location or site will make a good franchise location? Consider the following when making your decision:
Area Of Town:
An area of town that is already well-populated with other businesses, or is considered part of the business district can be a good choice. You do want to make sure that over-saturation is not a concern.Speaking of the area, consider whether it has a reputation of being a “good” part of town. Even if it doesn’t fit the “normal” definition of “good” part of time, if the safety of the public and protection of franchise property is provided to the best extent possible, it still might be a site to consider.
Don’t be hasty about giving up on a site if it isn’t in “best” location. Often, some city, county, or even state officials offer incentives or provide benefits for franchisees willing to locate in less-known or less-desirable areas.You will have to check with the franchisor if you are considering such an area. Some franchisors are reluctant to locate in “less desirable” areas, even if assurances of safety and protection are offered.
Access To Major Thoroughfares:
This includes interstate and state highways and well-traveled county roads. Drive down a city’s “Main Street”, too. It may prove to be an excellent location.
It may be more expensive to lease or rent real estate in these areas, but most likely, in the long run, it will be well worth it.
Location Of And Distance Between Competitors
Check out your competitors’ locations. Too many in one area can mean constantly having to “scrap” and fight for business. However, being the only one for miles around may not be all that favorable, either, especially if all or part of the county in which your franchise will be located is in a rural area.
If it takes too long or requires too much gas to reach your location, you can’t count on very frequent return business. You may have a few regulars who make it a weekly or monthly outing, but you will have to consider if this is enough to sustain the franchise.
Just because the area looks suitable does not mean it will be a good location. If it doesn’t look appealing, you still may find it harder to attract customers, even if the area is considered “safe.”