Is Now the Time to Buy New Franchise Locations?
As the workforce returns to offices and consumer spending increases, businesses are experiencing a positive upswing. More franchise owners are beginning to ask . . .
Is this the time to buy and add new locations?
Some franchisees are even contemplating venturing beyond their current franchise and purchasing a different one. While the outlook seems promising, there are essential considerations before acquiring additional franchises or franchise locations. Let’s explore these questions in more detail.
Is There Untapped Potential in Your Current Franchise?
It may sound like an obvious question to ask, but if you already own a franchise location, you possess distinct advantages. You’ve already made the initial investment, learned the ropes of running the business, and become familiar with its products. Additionally, you’ve built a team and established operational processes. Expanding within your existing franchise network allows you to leverage these existing resources.It’s worth considering whether you can enhance profitability by:
Refreshing your current location: Improving cleanliness and aesthetics can attract more customers.
Optimizing signage: Better signs can capture additional foot traffic.
Using more effective marketing and advertising: Is it time to start using modern tools like Google and Facebook ads, for example? There are many ways to sell more. Are you taking advantage of them?
Upgrading your staff’s selling skills: Some training can often unleash better results.
Introducing fresh training: Training is the way to improve your selling, market more effectively, improve customer service and accomplish much more.
In summary, while expansion is tempting, unlocking the full potential of your current franchise(s) might be the smarter move. Assess your existing operations, explore untapped opportunities, and make informed decisions based on your circumstances.
But If You Do Decide to Expand into New Locations
Choosing the right business location is crucial for success. Here are some key considerations when selecting a new business location:
Demographics and Target Audience:
Understand the local population, their age, income levels, and preferences.
Ensure alignment between your product or service and the community’s needs.
Accessibility and Visibility:
Opt for a location with high foot traffic, near major roads or public transportation.
Visibility matters—be easily noticeable to passersby.
Competition and Market Research:
Analyze competitors in the area. Are there similar businesses nearby?
Research market trends and demand for your offerings.
Costs and Budget:
Evaluate rent, utilities, and other expenses. Can your budget accommodate them?
Consider long-term affordability.
Zoning and Regulations:
Check local zoning laws. Some areas restrict certain types of businesses.
Obtain necessary permits and licenses.
Infrastructure and Amenities:
Assess utilities (electricity, water, internet) and infrastructure quality.
Nearby amenities (restaurants, banks, parking) increase traffic and benefit both customers and employees.
Future Growth Potential:
Look beyond the present. Will the area develop or decline?
Consider scalability—can you expand if needed?
Security and Safety:
Prioritize safety for employees and customers.
Research crime rates and the availability and quality or emergency services.
Remember, location impacts revenue, costs, and overall business success. Take your time, weigh the pros and cons, and choose wisely!
