There are many steps in starting a franchise business, but one of the most important is selecting a great location. A fantastic location is so advantageous that even if other areas of your business aren’t performing well, the franchise still has good odds of success.
When searching for a great spot for your business, you want to consider vehicle and foot traffic in the area, demographics of the local residents, and distance from the franchise to local houses and corporate offices. These data points can help you estimate the number of people who might see your business each day and can help you determine how busy you may be during peak and off-peak times. You can also use this information to get a rough idea of your typical customer.
The owner of the franchise, the franchisor, likely has access to special reports that detail this information so be sure to ask if it has any opinions or insights about the location.
Once you choose a physical location for the franchise, it’s very important to spend focused time and energy on negotiating the terms of the lease. A perfect location can be totally useless if the terms and economics of the lease don’t meet your needs.
You also want to follow all laws and regulations regarding franchises when selecting a location for your store. Since these rules may change at any time, it’s best to visit the Canada Revenue Agency and Canadian Franchise Association’s websites to stay up-to-date on the latest laws and regulations. You may also want to consult with a qualified legal professional who specializes in franchising.
Choosing your location depends on several factors, including how much traffic the location is exposed to and the type of neighborhood. You also want to spend enough time on negotiating great terms for your lease. If any of these factors are not favorable, it likely means the location isn’t the best choice for your business.