How do you select the best location for your franchise? What are the determining factors?
While most franchisors offer some guidelines to determine what “constitutes” a good location, it seems that fewer care to be involved with the actual search compared to earlier years. Yes, the actual cost of conducting a search can be an expensive proposition, but the franchisor’s liability (if the location does not work out) appears to be a factor in the decision to “approve” of a location found by the franchisee, as opposed to being party to the onsite legwork and selection process.
The specificity of “guidelines” for evaluating potential locations also varies from franchisor to franchisor, but as with most things in life, the higher the quality of the offering, the greater attention paid to details, such as it’s location. Obviously, a drive-through food operation requires traffic, and a day spa requires peace and quiet, and so on. Determining factors are a function of the business under consideration, eg., in the case of a home-based franchise, it is not the location, but the overall demographics of the area that take priority.