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Will a franchisor help me to source a good location?
Alan Wilkinson writes:
If you are joining a property-based franchise, be that retail, food and beverage, or service sector, then opening in the right location can be critical.
The franchisor will have experience from the existing network of what type of location, footfall and demographic area is required in order to operate a successful unit. Often, a franchisee business plan may be tailored according to the location and footfall. For example, in food and beverage, where the customer either eats in, or visits the outlet for take-away food, a high footfall of the right demographic of customer will lead to a higher turnover. however, the same brand in a less busy area may have a lower rent, and therefore may still be a viable business. all of this information is critical in deciding upon the right location, and the franchisor should be able to advise on this.
As for who is responsible for finding the premises, this typically falls on the franchisee, who has local knowledge of the area. However, the franchisor should provide help and guidance, both in the finding of the location, and also in negotiations with the landlord. Often a franchisor may have links with property agents who can assist with this process. In this circumstance, there will be a fee to pay, and this will almost always be payable by the franchisee.
Premises are easier to find today than they were a few years ago, but also that prime locations are being taken very quickly. Depending upon the brand, consider whether a prime location is required, or if a secondary location may meet the needs of the business just as well.
Alan Wilkinson is head of franchise development at The Franchising Centre and has been in franchising for over 25 years.
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