I’m considering investing in a retail franchise. Who chooses the site for the business?
answered by John PrattSenior Partner at Hamilton Pratt
strong>John Pratt writes:
The whole point of franchising is that a franchisee has the benefit of the franchisor’s experience, so franchisees would certainly expect the franchisor to have some input in selecting their premises. Precisely what involvement that is will depend on the terms of the franchise agreement.
At the low end of the range, franchisors would simply reserve the right to approve the premises and possibly the lease of the premises. At the other extreme, franchisors will set out in detail the process franchisees have to go through in selecting premises, supplying the franchisor with details of the property, organising franchisor visits to the premises and obtaining the franchisor’s approval. Some large franchisors will have their own property team and will provide prospective franchisees with premises that have already been located.
Prospective franchisees should expect some support from a franchisor in finding premises, whether that support relates to the franchisor having contacts with large estate agents, which enables it to become aware of suitable premises sooner than the franchisee would, the franchisor having specific criteria that needs to be applied in choosing premises or whether franchisors are prepared to send their personnel to assist in choosing the premises.
John Pratt is senior partner at specialist franchise firm Hamilton Pratt and has advised franchisors for over 25 years.
- How Do I Get The Most Out Of A Franchise Exhibition?
- What does the term ‘multi-level franchising’ mean?
- As I have a professional marketing background, I would like to know what restrictions are placed on
- What tips do you have for financing a franchise?
- What’s the difference between a business format franchise and a business opportunity?
Want to be your own boss? Start today!
Relooking is a beauty franchise, offering a variety of skin care and anti-aging treatments... find out more£18,000 Minimum Investment
Sweets and Treats Vending is a confectionery distribution franchise company... find out more£9,950 Minimum Investment
SuperGreen Solutions is an advisor, supplier, and installer of energy-efficient solutions to… find out more£178,000 Minimum Investment
Enquire now from
You have pending
Here's just five reasons why you should join our FREE newsletter!
New articles added every week
Hand picked franchise opportunities just for you
First class help and advice for franchising and business
We have the industries best contributors on board
Inspiring and insightful franchise case studies