Every retail and commercial location or business is going to have its own criteria - this is especially true of franchises. This criteria goes beyond the requirements of the specific franchise and have more to do with strategic placement and location for any given business. For example, a coffee and donut shop is best located on the "going to work" side of the street. Conversely, a fast food franchise would do better on the "going home" section of town, where the traffic gets heavy during evening rush.
To choose the best location for your business, there are several points to consider. One of the first things you can do to scope an area is looking at the competitors and find out how they leverage the locations around them to improve business. Here are some additional tips on choosing a sound location for your franchise.
The Appropriate Type of Location
Some businesses do best in a specific type of location like a mall, a mini-mall, outlets or strip malls, free-standing, etc. A video store for example does better in a small location, as does a Laundromat. Other businesses, like florists, do very well in small locations at the street front.
Demographics are Key
Your business should be appropriate for the location. You wouldn't open an upscale dining franchise in an economically depressed area. Use demographics to get an idea of the number of homes, average home size, income median, overall population density, crime, etc. This information is easily found online.
The Locals
Move among the existing businesses in the location or neighborhood where you want to open your business. You can learn a lot by directly engaging the local business owners, customers, employees and residences within a given neighborhood. What they want to see, what they miss, what they dislike, etc.
Access, Visibility and Signage
These could each be discussed individually but they can be grouped together because they all can make or break a business. You need to ensure that a location is not only visible from the street but that you have a place to put up signage that will turn heads and make you easy to find. Above all else, the location you choose should be easily accessible. Customers will happily drive an extra mile or three to a competitor if your parking and entry is difficult to get into and out of.
Proximity to Competitors
It pays to know how many of your competitors are nearby and where they're located. Take the time to find a location that balances out the competition. Part of your open strategy will be to recognize what kind of marketing they're doing and trump it in order to make it work for you as well.
Big Anchors
Big Box Retail stores and other major brands that are well known can actually help bring business to your own franchise - especially if you're in close proximity. Often the trust and comfort of a major brand will "rub off" on surrounding businesses. The closer you can get to a major brand the better it can be for your own business.
If you're not sure where to start looking for good commercial property to open your franchise, turn to the web to do your initial research. Contact realtors as well that specialize in commercial property (especially those for franchise owners).
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