Choosing the Right Franchise Location

As in the Real Estate industry it all goes about location, location, location … or does it!

The right location for your franchise will be dictated to you by the criteria for the specific industry sector it serves. If you go to your customers, rather than your customers coming to you, it makes sense to pursue a home-based or a location where accessibility and visibility are not criteria. Similarly, manufacturing franchises will pursue a location in a semi/industrial area where the manufacturing facility or a warehouse attracts a lower monthly rental.

On the other hand, the location of retail franchise businesses, which are the largest contributor to the franchise industry in South Africa, is especially important. Retail sites must be carefully evaluated because where you decide to locate your franchise may make or break your business.

Criteria which must be evaluated will include:

  • Traffic accessibility – is your location easily accessible
  • Parking – is there enough parking especially in peak times
  • Tenant Mix – does this compliment your business
  • Anchor tenant/s – will they drive the consumer numbers to your location
  • Competitors – do you out-position them
  • Rental – this must make economic sense

The reality is that each franchisor should have its own specific set of requirements and regulations when it comes to selecting a site location. A quality franchisor should have already done a lot of the market research for you as it’s in their best interest to keep track of demographics, and they’ll share that data with you. They also have something you might not have as a first-time franchisee: experience.

kevKevin Antonie


SA Franchise Brands

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