The previous post focuses on the importance of location as one of the keys to successful franchise business. Some strategies to choose the franchise location have been discussed. They include choosing a defined criteria, avoiding focusing only at a single site or only on size. In fact, choosing a right location for a franchise, particularly a startup, is not an easy task. Many things must be taken into account.
Keys to Successful Franchise Business: More Strategies
Measuring Economics Value
A site needs to meet several requirements for being chosen as a site for franchise. In fact, meeting all physical requirements is not enough. Economic value of the site for the coming years must be estimated. However, most franchisers think that this is not their responsibility. In fact, the franchisers need to make sure that the build costs and the operational costs are not too high.
A franchisor is responsible for making sure that every aspect in the business, including the location, adds up economically. As a result, considering the value of location in the coming years is important. You do not want to build a business in a location, where the business cannot stand for at least years, right?
Letting the Franchisees Choose
It does not mean that you give every decision to the franchisees. It does not also mean that you give them freedom to choose. In fact, the franchisees certainly know local conditions better. Therefore, let them get some insights on the community. This allows them to understand the market tendency and trends in a better way.
You can let the franchisees choose the location after making sure that they have comprehensive insights on the location. Make sure to review their business proposal before approval. This is certainly one of important keys to successful franchises.
As mentioned before, as a franchisor, you are responsible for the defining the location criteria. They include physical location, layout, length of lease, size of the site, estimated economic values and other aspects like community behaviors and market trends.
You may need a legal counsel for this, if you are not skilled in measuring the economics of location. A legal counsel may give you insights, considerations, and recommendations in choosing a location that meets the necessary requirements. Collaboration with the experts is important to aid franchises in the search.
Whenever you find a location that meets all the defined criteria, in terms of physical and economic aspect, act fast. Such a site will not be available for long. Other business may be looking for a site that meets the same criteria. Therefore, make the deal swiftly. In fact, a letter of intent is not always enough to bind a location. It may disappear quickly if another business takes it.
Of course, choosing the location is only the first step. The ways to grow the business still depend upon many aspects. Success of the business essentially depends upon your assistance. Make sure to enlist all resources relevant to business. You will need them in reviewing the ease for the following years.