Considerations when selecting your franchise location

Newsletter Ask The Experts


Location is everything … or is 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 to be evaluated will include:

  • Accessibility – is your location easily accessible
  • Parking – is there enough parking especially in peak times
  • Tenant Mix – does this compliment your business
  • Foot Traffic– will the anchor tenant/s drive the consumer numbers to your location
  • Competitors – do you out-position them
  • Rental – this must make economic sense
  • Lease – consider the terms and have an attorney look over it to ensure that your rights are protected

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.

Take plenty of time to choose your franchise’s location, because you’ll be tied to it for years. This is a decision almost as important as choosing the franchise itself, so treat the decision accordingly.

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