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Factors That Affect A Good Franchise Site Location
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Factors That Affect A Good Franchise Site Location

Factors That Affect A Good Franchise Site Location

Franchise Article Author: The Franchise Guide

Choosing the best franchise is just half the equation.  Without the right location for it, you may find it hard to recoup your investment.  So how do you choose the right location for your franchise?

Perhaps the first thing you should consider is if there are enough people in your locality to ensure that sufficient volume will be consumed.  If not, does your area have any plans for expansion?  The more you cater to a small segment or niche in the market, the bigger the population must be.  Moreover, the product volume consumed monthly must not only be sufficient to cover your monthly expenses but must also bring you a profit.

You should also think about where the people who can afford your product or services live.  Your city may have the perfect solution for these people with the buying power but if your product or service is inaccessible to them, how will you profit?  Rule of thumb in this case is to place your business along the routes or place your customers generally go to or through.

Of course, affluent people will not take a second look at your store if it is located in a seedy neighborhood.  In fact, they might never see your store at all.  So take the time to match the neighborhood or the place to your target market’s preferences.

You will also need to consider the businesses that may avail of your products and services in your area.  Of course, you will want to locate your franchise as close to them as possible.  If your target customers or clients are for example schools in your area, then you will have to locate your tutorial business near them.  Bottom line is, your customers will generally dictate where your franchise will be located.

Of course, not only will you have to make your franchise location accessible to your customers but to your employees too.  An inaccessible franchise place may be too far for quality employees therefore degrading the quality of your service.

You will also have to consider your competition in the area.  On some cases, it will be to your advantage if you locate your franchise location near your competitions as people looking for this service will be made aware of your new office.  If the competition is too strong however, it may be better to locate your office further out from your competition.

With these factors and more, you will be able to have a better idea on where to locate your franchise outlet.

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