Keep Local Regulations in Mind
All states and localities have different regulations for businesses, so you need to be mindful of them. Check with the local township to ensure your business will be in compliance. Whether you are buying an existing business resale or constructing a new franchise site, location plays an important role in the success of your business. In addition to working with your franchisor, seek assistance from an attorney to represent you and your interests. Landlords and real estate brokers will also be important players in this process. All of this should be kept in mind when deciding on the right location for your business.
An important aspect of your franchise business is your customer. When considering franchise location selection, there are important demographic factors to consider: age, income, education, family size, and more. All of these factors can impact the success of your business. For example, if you're looking to open a pet-related franchise, you'd want to find a location around families who have disposable income to get a pet and all that comes with it. Like purchasing a home, it is important for a franchise owner to know the area where their business will reside.
Many of your customers may need special accommodations, such as wheelchair-friendly ramps at entrances and exits. When choosing the location of your franchise business, keeping the entire public in mind is crucial. For full details on special considerations that business owners are mandated to follow by federal law, you can check out the Americans with Disabilities Act.
As a franchise owner, it's important to put yourself in the shoes of your customers. You can do this by considering details that are important to you when you visit a business. A detail that can be overlooked is parking. Parking lots offer customers safety and convenience, which many will appreciate. The cleanliness of the parking lot is part of the customer experience, so keeping it tidy is another aspect of the business to consider. Curbside pickup is an added revenue stream for many businesses, so having space where customers can safely and efficiently park can be a differentiating factor for your franchise.
Why is Location Important for a Business?
Although it seems cliché, “location, location, location” definitely applies to franchise ownership. With the help of a real estate team, many franchisors provide franchisees with site selection assistance. When deciding on an ideal location for your franchise business, aspiring franchisees should focus on areas with heavy foot traffic, be aware of the competition in your area, and keep local regulations and consumer demographics in mind.
It is also important to consider if you want to construct a new location or engage in a resale. A study on the economic benefits of buying a franchise resale from Palm Beach Atlantic University’s Rinker School of Business stated that franchise resale prices were 1.5 times more in comparison to non-franchise businesses.