How do you research your franchise location?

1 Know your target market

Before you start looking for potential locations, you need to have a clear idea of who your target market is and what they need. Your franchisor should provide you with some market research and demographic data to help you identify your ideal customers and their preferences, habits, and spending patterns. You can also do your own research by visiting other franchises in your area, conducting surveys, and using online tools like Google Trends and Census data. The more you know about your target market, the easier it will be to find a location that matches their needs and expectations.

2 Evaluate your location options

Once you have a list of possible locations, you need to evaluate them based on various criteria. Visibility is important; consider how easy it is for customers to see and access your franchise, such as if it's on a busy street or near a landmark. It's also important to consider the amount of traffic that passes by your franchise every day, and how many of them are likely to stop and visit. Additionally, you should research the competition in your area and compare your franchise in terms of quality, price, and reputation. Costs should also be taken into account; think about how much it will cost to lease or buy the location, as well as utilities, maintenance, taxes, and insurance. Finally, research local laws and regulations that affect your franchise; do you need any permits, licenses, or approvals to operate in the location? You can use a location analysis tool or a spreadsheet to compare and rank your options based on these criteria. Additionally, it's beneficial to visit each location in person and talk to the owners, employees, customers, and neighbors to get a feel for the area and its potential.

3 Consult your franchisor and other experts

Before you finalize your location decision, you should consult your franchisor and other experts for their input and approval. Your franchisor may have specific requirements or guidelines for choosing a location, such as a minimum size, a certain distance from other franchises, or a designated territory. They may also offer you some support or assistance in finding and securing a location, such as providing site selection services, negotiating leases, or financing options. You should also seek advice from other experts, such as lawyers, accountants, real estate agents, and local business associations, who can help you with the legal, financial, and operational aspects of your location choice.

Choosing a franchise location is not a simple or easy task, but it can be rewarding if you do your research and follow the best practices. By knowing your target market, evaluating your location options, and consulting your franchisor and other experts, you can find a location that suits your business goals and maximizes your chances of success.

4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?