How’s a franchise location evaluated?

answered by Louise Harris

Franchise network manager for NIC

Louise Harris writes:

A franchise location, or territory, can be based on a number of criteria, including number of people living there (possibly categorised into social bands), average pet owner figures, number of commercial and/or residential properties, number of local businesses, distance from another fast food restaurant, ageing population data, etc.

In the case of a retail premises, there should be a guide on passing footfall or similar measures that help build the ‘perfect’ location. A franchisor should always be open about this and it’s important you understand, when buying the franchise, the nature of your territory.

The location should be based on the best information available. In a young franchise (new or with only a few sites open), this information should have been informed by a pilot franchise, but should be developed by the franchisor as more analysis on a successful (or indeed unsuccessful) territory can be made.

Even when that data has been gathered, the franchisor is unlikely to make any guarantee of success. You should be asked to research your area and satisfy yourself there is both a need and sufficient territory to satisfy the goals of the business, either set by the franchisor or you.

Louise Harris is the former franchisor of Wilkins Chimney Sweep. She’s also been a franchisee and franchise induction and support training provider.