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What to Consider When Choosing Your Franchise Location

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Location, location, location. That expression is widespread in real estate but is equally important in franchising.

When you start a new franchise, many logical factors must be considered before you invest a dollar. If you’re exploring which franchise to open and want to take smart steps that will set you up for success, ask yourself the following questions about the area where you’re looking to open your doors.

Is There Market Demand?

Before you ever set up a shop, you want to know that you’ll have enough buyers in your area to make it worth your investment. For example, you don’t want to set up a franchise for seniors when you live in a college town with a lower-age population. Similarly, you don’t want to open a family-oriented franchise in a city without young children.

To understand if there’s market demand, start doing research in the area where you’re starting a franchise. Go to local forums and online groups. Look at the demographics of the region. See what businesses are already there and are thriving. Remember, competition in your area can be a good sign because it shows there’s a market for the type of franchise you’re looking at starting.

Can You Build the Infrastructure You Need?

In addition to needing customers who will buy from you, many franchises also require some infrastructure. For example, if you enter a quick-service restaurant franchise, you’ll need a restaurant where you’ll do the cooking. If you’re starting a cleaning franchise, you must buy the appropriate equipment to complete the job within the franchise standards.

Before you invest in a franchise, it’s essential to consider the cost of infrastructure. It’s also important to address whether you’ll need any special permits or accommodations to get the proper infrastructure in place to operate at total capacity.

Talk to your franchisor to learn more about what’s required to budget and scope out the area for the right equipment, facilities, and location(s) for your franchise investment.


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Is the Area Within Your Budget?

The area where you choose to open your franchise matters quite a bit. Not only will the area affect the cost of infrastructure needed, but it will also impact how much your target market can afford to spend and the ongoing budget you’ll need to account for when buying supplies.

Look at the part of town where you decide to open your franchise. Will it be within your budget, or will you need to move to another location? If you choose the latter, go through the first two questions to determine whether there’s a market in the immediate area for your franchise and if you’ll be able to get the infrastructure needed to open your doors within budget and on time.

Can You Hire Talent to Help?

If you’re opening a franchise that requires extra hands on deck, it’s important to consider the workforce in your area. Will you be able to hire talent to come in and support you when you open? Or will you have a sparser workforce? If the latter is true, you might want to go through the first three questions again to see if there’s a better area for you to set up shop. Not having enough employees could cause undue stress and pressure as you grow your new business.

There are many moving parts when it comes to opening a franchise. By going through the questions to figure out market demand, cost of infrastructure, affordability of the region, and workforce availability, you’ll have a better idea of what to expect when you open your doors.


Kimberly Crossland is the founder of Roadpreneur and Cruisin' + Campfires, two companies designed to keep families together and living in freedom through travel and entrepreneurship. The goal of both businesses is to inspire meaningful change through the power of a strategic, thoughtful approach to life and business. In her free time, you can find her looking for a new adventure together with her two boys.

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