Choosing the Ideal Location: Key Factors for Franchise Site Selection Success
Few concerns can be more pressing for a new owner than franchise site selection. Picking the right spot can help a business grow and enhance customer loyalty and brand recognition.
Before making a franchise site selection, the owner should take the time to get the lay of the land and gather all the facts so they can make an educated and informed choice. Here’s what to consider along the way regarding a business site selection.
1. What Market Am I Trying to Reach?
The first and most critical factor when considering franchise site selection is the business itself and its target market. Knowing the customer base can make choosing a location much easier.
The industry also matters — different services and products are designed to appeal to different population groups. An ideal spot for one business might be the wrong place for another.
In the Middle of the Action
For example, a sports bar owner should pay attention to both foot traffic and ease of access to vehicles. Finding a place that serves both needs can help clarify location and site selection in franchising for them in a hurry.
Work with the brand to learn as much as possible about the market and apply that information to help find the location best in tune with it.
2. What’s My Territory, and is it Exclusive?
The next issue during the franchise process to consider when reviewing a franchise location selection criteria is territory. Many brands will place owners as single operators in a territory and give them exclusive rights to operate within it.
It’s not a guarantee, so reviewing the brand’s franchise disclosure documents first is essential to learn how they work and what to expect during franchise location criteria selection.
Keeping an Eye on the Competition
Even if the brand keeps territories exclusive to one owner, other businesses could compete for the same market. More competitors can dilute the customer base and impact growth.
Do a little homework before engaging in franchise site selection. Examine the potential competition, and check to ensure the market isn’t already saturated.
3. How Does the Local Community Affect Franchise Site Selection?
A franchise rarely operates on its own, without any influence from outside forces. There are often other businesses around them, and in some circumstances, a group can develop a mutual assistance and reliance approach that helps everyone grow.
It works best when the businesses appeal to the same market. For instance, a bowling alley, driving range, and bar can make effective partners and create an environment where customers move freely between operations.
Get to Know the Brands Around the Site
This concern can be addressed with basic getting-to-know-you tactics. Once the potential locations have been narrowed down to just a few, walk around each neighborhood and visit the local businesses.
Find out how well they work together, and see what they think about developing a synergistic relationship between their business and the proposed location.
4. Will the Franchise Location Selection Be Right in the Future?
A new business needs to set up shop where the people are today, but many owners are in it for the long haul. That can make it critical for franchise site selection to take a broader and more far-reaching perspective.
Cities change over time, and different areas can transform from sleepy suburbs into energetic hotspots seemingly overnight and vice versa. It’s part of the organic and flexible nature of the modern metropolis, and it’s a crucial consideration for you to get a business both well-positioned and as hot as possible.
Look at Trends and City Plans
This is the moment to dig into expectations for the neighborhood targeted for the new location. Are there plans to help shape future growth or proposed construction projects that could affect foot or vehicle traffic?
Most cities generate long-range plans — look for them online, or visit the city’s administrative offices for concrete information on what to expect at the selected location and the surrounding area in the coming years.
5. How Much Does the Franchise Site Cost?
Opening a new business can be exciting and fulfilling in a new owner’s life, but they must always keep expenses in their mind. Franchise site selection costs can vary significantly depending on location.
Those franchise costs & investment numbers are often connected to the location’s potential. A spot with high foot traffic and visibility will probably go for more than one that’s off the main path.
A Balance of Visibility, Convenience, and Value
Like choosing a location based on the market, striking the proper balance can be the key to picking a site based on cost. It might not be in the business’s best interest to go as low-cost as possible, as those spots might need to be more appealing, affecting customer loyalty and slowing growth.
Pick a place that’s still easy to reach and highly visible without being too costly. It can sometimes take a little looking, but persistence can pay off.
Make Hotshots Your Partner in Franchise Site Selection
The best way to place your new business where it’ll be seen and visited is to work with a brand with the know-how and experience needed to pick the right spot. It’s how Hotshots Sports Bar and Grill builds for future growth, with strong franchise support & training as well as a brand filled with history and experience.
We’ve developed a sports-bar approach our customers love, with unsurpassed customer service, entertainment wherever you look, and a menu of crave-able sports bars and grill food designed with freshness and flavor in mind.
At Hotshots sports bar franchise, we know how to select the best location for a sports bar, and we’re preparing to put our skills to work in new territories with new franchise partners.
Want to find out more? Connect with us today!
