Franchise Site Selection: The Do’s and Don’ts of Choosing a Location
Location, location, location! Not just a clever turn of a phrase, but very poignant when it comes to choosing the right spot for your potential business to thrive. If you are planning to purchase a franchise, the second biggest decision you will have, besides choosing the actual brand to own, is choosing a location. That location must have accessibility — easy to get to and ample parking, visibility — a high-traffic area where potential customers can find you, and affordability — you don’t want the real estate to break the bank.
These are not easy tasks. But luckily, franchise site selection is one of the many perks of franchising. Along with training, support, and the use of a reputable brand-name business giving you the edge in the market, you’ve got the franchise corporate support to assist with this detail. Attracting customers to your location is integral to its long-term success. Not only do you want that, but so does your franchisor.
How Franchisor’s Help with Site Selection
The franchise site selection process varies according to the brand, so it’s important to understand beforehand what guidance your franchisor will provide. Many corporate teams typically have very specific criteria and guidelines about the type of location they are looking for, like how busy the area is and what other anchor stores are nearby, attracting potential customers.
The franchisor may also work with a national broker and commercial real estate agents to help secure a perfect locale. Keep in mind, you will likely have a big role in this selection process if you are opening a business in your own community or a town you’re familiar with. Since you know the lay of the land, you will be vital in creating a list of viable location options to begin the search.
Once locations are identified, they will be presented to the franchisor. This is an important step. The franchise has a team of savvy people who know this stuff inside and out. They use formulas when doing their due diligence, looking at several factors.
For example, accessibility looks at actual traffic patterns and how easy it is to enter or exit the proposed location. They must determine if the local municipality will be making any changes to traffic patterns in the city’s 10-year plan, which could have a negative impact on your location. Is the city expected to experience growth? Is the city’s economic health good?
Next is visibility. Will the brand’s sign be visible from the street? Is there competition close by? If the space is leased, will the landlord allow a competitor to be part of the same shopping center, for example?
The franchisor researches demographics; is there potential growth in this area? Can the current customer base provide enough business in this location?
And then there’s the affordability factor. Is the leased space reasonably priced? While it might be great real estate in a high-growth area, if the rent is too high, it would seem impossible to turn a profit. That can make or break your franchise location.
Once all this is looked at, seemingly under the microscope, the franchisor will approve or veto the franchise site selection. This means it’s best to have about three potential sites up for consideration. If disapproved, you go to the next choice in line or back to the drawing board for the whole process to start over.
MassageLuXe Leads the Way
At MassageLuXe, site selection is part of our proven concept, which helps your location and the overall brand grow. MassageLuXe is a respected name in the spa industry. We believe in the strength and power of massage therapy and treating your skin properly. Not only are we leaders in the massage industry, but we are a high-performing franchise, thanks to the support we provide our franchise owners. We are always happy to answer any franchise questions about MassageLuXe.
For example, when it comes to assisting with franchise site selection, we look at population, competition, demographic and psychographic information in your market to help you determine the best location for your spa. A MassageLuXe representative will visit the market and get to know the area while helping you determine which neighborhood to target. We take it to the next level, too.
When you purchase a MassageLuXe spa, you also purchase a territory. Your franchise agreement gives you the sole right to operate within your given area.
We assist in every aspect of startup through growth. From choosing a site to facility design to financing resources, MassageLuXe makes starting your own business a straightforward and relaxed process so that you can live out your dream of entrepreneurship.
If you are looking to be part of the $18 billion massage industry by opening a MassageLuXe in your community, scroll down to fill out the contact form below.