This article will lead you to evaluating an appropriate location for your Franchise Business.
Finding the right location is critical when starting a franchise. Fortunately, franchisors work closely with their franchisees to select appropriate locations, so you won’t be doing all the work yourself. After you identify acceptable locations, you need to analyze a variety of factors—foot traffic, neighboring tenants, and the demographics of the area. Before signing a lease, you’ll probably need the franchisor to approve the location.
Whenever you talk to a franchisor and ask him about the most significant Element of opening a store, most of them would say Location, Location, and Location.
Setting up shop in the right spot is a key to helping your business succeed. But if you're new to the franchise world, knowing the right spot to choose for your business can be easier said than done. So how can you find the best spot in town to open up shop?
Location is one such asset that is a long-term investment and determines the success of your store. Scouting for the apt location can keep you on your toes but once you find it you can breathe a sigh of relief. As it is an important aspect, the process of obtaining it should be carried out after analysing various facets chained with it. Here is a list of considerations you need to keep in mind.
The most significant aspect to be considered is the footfall of the area chosen. If the footfall will not be per say the requirements, then the store would run into losses. If the client walk in is tremendous, then your store for sure will rake in a lot of money.
Commercial viability is what it will boil down to when we opt for a business. If opening at a location seems unviable to you, but you think you can get things rolling by putting to use other means then you are wrong. If the location is wrong, nothing will work in your stride.
Sales-to-rent ratio in a store helps you to analyse your proceeds. For some getting a prime location means shelling out a larger chunk of investment however ideally your sales- to-rent ratio should not exceed 10 per cent of your sales.
Nowadays, a major problem all of us face while out shopping is parking and at times we give a pass to a particular store just because of the parking hassles. This can lead to losing out some of your potential customers. So when you’re getting space for your outlet, make sure you offer your shoppers the convenience of parking.
Availability of utilities
When we go out to get space for a store we might get overwhelmed by finding the apt location but we might forget to discuss intricacies of the deal which you may encounter once you start operations. To avoid such a situation, make sure you get information on all the utilities available to you.
In case you are having trouble with the location, you can also seek help from your franchisor. Being experts, they can help and guide you in the best possible way.
If opting for the precise location was giving you jitters, the above-mentioned pointers should now make it simpler.