Franchising simplifies finding the right location for a new business

Franchising simplifies finding the right location for a new business

Choosing a location for a new food business is a complex endeavor. Investors must consider how traffic is driven to surrounding stores, the density of consumers in the area and which aspects of the store are most likely to draw in customers, according to Inc. This process can be time consuming and difficult without the proper resources. It's important to get it right – failure to choose the right location can stunt a new restaurant's growth. Luckily, franchisees have a leg up over traditional new business owners because much of this work is performed by the franchise. In fact, support in finding a location is one of the key advantages to owning a food franchise.

Selections provided by the franchise
The franchise model encourages franchisors to invest in the success of their franchisees as much as possible. Some companies have dedicated teams that scout and identify key areas where new franchisees will be likely to draw in customers. In locations where the brand has been operating for some time, the franchise likely has an expansion plan and a map of ideal locations drawn out. In situations like these, a franchisee's choice of locations will be limited by the presence of other franchise stores. Limiting territorial overlap ensures that two franchisees do not cannibalize each other's business, noted the Federal Trade Commission. If franchisees are satisfied with suggested locations for their stores, then this question is resolved as easily as signing on the dotted line.

Feedback from fellow franchises
Expansion plan maps aren't the only resource that franchisors provide to investors for finding locations for new stores. The franchising model encourages cooperation between franchisees, and many hold events throughout the year meant to bring franchisees together so they can network and share best practices. The insight of a fellow franchisee, especially one who has already opened multiple stores targeting similar markets, provides new owners with an experienced perspective on location analysis.

Advantage of personal expertise
One of the benefits of the franchising model is that most companies are willing to take suggestions from store owners. This extends to location selection, especially if the franchisee has deep roots in the local community. Familiarity with the needs and wants of a neighborhood are powerful resources that franchisors can leverage when deciding how to expand and market their stores. By combining a franchisee's personal knowledge with the resources of a major chain, food franchise investors have the best opportunity for finding a profitable location.