How to Determine if a Location is Suitable for a Franchise

Apr 02, 2020 06:09 pm | Franchising

The suitability of a location varies depending on the brand and type of package that you do choose to franchise. However, there are a few factors that are universal to determine whether the location you’ve chosen is fit for your franchise business.

1. Space type and size

This determines what type of franchise can fit in the area. Whether it be a kiosk, a small in-line franchise, or a big in-line franchise, the space type and size will have to fit the type of franchise you want to own.

2. Target market

Before all else, know who you’re planning to sell your products to, then find out if they’re situated near your franchise. For example, if your franchise sells school supplies, make sure your location is situated near a school.

3. Foot traffic

Most commercial areas have data on their area’s foot traffic which you can leverage. The higher the foot traffic, the higher the possibility of customers.

4. Nearest competitors

One of the largest hindrances to your sales will be your franchise’s competitors. Before choosing an area for your franchise, scout the nearby areas to ensure that you’ll have the go-to product for your market.

5. Sales generators

Sales generators are factors that contribute to a high foot traffic area. Some examples of these are things such as schools, offices, and others which attract large groups of possible customers.

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