Franchising can certainly be less risky than starting your own business from scratch. The franchisor has already done a lot of the work for you: they’ve created a strong business plan and they’ve built strong brand name recognition.
Before you can capitalize on their good work, though, you first have to figure out precisely where you’re going to locate your franchise business. A good franchisor will work closely with you and there’s plenty to think about on your own when you’re scouting a location.
The old adage still rings true when it comes to franchising: location, location, location. Here’s our guide to picking the perfect site that will allow you to become a successful franchisee.
Selecting a Franchise Location: Know the Principle Inside and Out
The first step is to understand the concept of your franchise business. To find out what makes your franchise business of choice tick, you’ll need to work closely with the franchisor to learn the answers to the following questions:
- What drives customers to the business?
- Who are its target customers?
- Where do those target customers live?
- Are your customers coming to you, or are you going to them? (In this case, location is less important and you might even be able to start a home-based franchise.)
- How and when do those customers interact with the business model?
- Does it rely on impulse sales?
Good franchisors (the type you want to be in business with in the first place) have already done a lot of the market research for you. It’s in their best interest to keep track of demographics, and they’ll share the information with you. They also have an important something you might not have as a first-time franchisee: experience.
Investigate what sort of territorial protection you have. You’ll want to make sure that the territory you have carefully selected is exclusive to your franchise unit and will not expire unless you don’t renew your franchise agreement. Make sure that both of these elements are in place or another franchise unit could encroach on the territory you have cultivated.
Selecting a Franchise Location: Recognize that Criteria are Different for Non-Retail Sites
Retail franchise businesses only account for part of the wide variety of franchise business options to choose from. It makes sense to pursue a home-based franchise when you are going to your customers, rather than your customers coming to you.
To learn more about fun business opportunities with High Touch High Tech, visit us online at ScienceMadeFunFranchise.net.
High Touch High Tech is the leader in innovative hands-on science and nature experiences for children, serving over 4 million children annually with 27 franchise locations across the United States, Canada, Turkey, Singapore and South Korea.