As a franchise owner, you have a number of factors to consider before you can open the doors to your own franchise. You might have heard the expression, “location, location, location”. It’s a saying that is often used in real estate and is a reference to the fact that a business needs to be in the right place geographically to be successful.
Morne Cronje, Head of FNB Franchising, shares a few tips on choosing the right location for a franchise.
1. Understand your business
There are many different types of franchises, so when considering a location, think about what type of business you have and what would drive customers there. If you have a restaurant, you want to be situated in a place with a lot of foot traffic and easy access for people travelling in cars as well as people using public transportation.
2. Do your homework with the franchisor
Each franchise and business has its own set of requirements and possible regulations that govern what type of space you will need for your franchise. A restaurant would need a different type of space and size of space compared to a photocopy shop. So it’s best to sit down with the franchisor to understand what type of space you need.
3. Speak to fellow franchisees
It’s a good idea to talk to other franchisees to find out how they went about finding a space for their business. An even better idea would be to speak to franchisees who have made their business a success. Extract as much information from them as possible so that your business can be a success too.
4. Location, location, location
The location of your franchise can’t be emphasised more. Factors to consider when choosing your location include studying traffic patterns. You could be on the right street, but are you on the right side of the street? Is there enough parking available? And look to see who your neighbours are. Are they the kinds of stores that your customers will visit? If so, then you have a winner.
5. Seal the deal
When it comes to negotiating space and rent, have a reputable real estate agent or franchisor representative in your corner so that you can negotiate the best deal possible. You’ve spent most of your time focusing on selecting a site, but a professional will carefully examine details that you might easily overlook.