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Location Criteria to Open a Retail Franchise Business

Each retail and commercial location or business has its own criteria – this especially true of  franchise. These criteria go beyond the requirements of a certain franchise and have more to do with the strategic placement and location for a particular business. For example, a coffee and  donut shop is best located on the “going to work” side of the road. In contrast, a fast-food franchise will be better on the “going home” section of city, where the traffic get heavy  during the evening rush.

To select the best location for your business, there are some points to be considered. One of the first things you can do to scope an area is looking at the competitors and figure out how they leverage the location around them to improve business. Here are some tips in choosing the location for your franchise.

The right type of location

Some companies do best in certain types of location such as malls, mini malls, outlet or strip mall, free standing, etc. A video store for example does better in small location, and does a laundromat. Other companies, such as florists can do very well in a small location at the street front.

Demographics is the key

Your company must be appropriate for the location. You will not open an upscale dining franchise in the ​​economic distress area. Use demographics to get an idea of ​​the number of homes, average house size, population density, the average of income, crime, etc. This information is easily found online.

The local

Move between the existing business in the location or neighborhood where you want to open your business. You can learn a lot through directly involving the local entrepreneurs, customers, employees and residences in a particular environment. What they want to see, what they miss, what they do not like, etc.

The Accessibility, visibility and signage

These can be discussed individually but they acan be grouped together because they all can make or break a business. You must ensure that the location is not only visible from the road, but that you have a place to put up signage that will turn heads and make you are easy to be found. Above all, the location that you choose should be easily accessible. The customer will be happy drive an extra mile to a competitor if your parking and entry is difficult to get into and out of.

Proximity to competitor

It pays to know how many of your competitors are nearby and where they are located. Take time to find a place that balances out the competition. Part of your open strategy will be recognizing what type of marketing they do and trump it to make it work for you.

Large anchor

Big Box retail store and other major brands that are well known may actually help bring business to your own franchise, especially if you are in close proximity. Often, the trust and comfort of a great brand  will “rub off” on surrounding the businesses. The closer you can get to a great brand, the better it can be for your own business.

If you are not sure where to start looking for a good commercial property to open your franchise, turn to the website to do your initial research. Contact the seller agent that specialize in commercial real estate (especially for the franchise owner).

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location criteria for retail and service business, location criteria for retail and service businesses

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