When researching a franchise, the most important factors to consider before signing a lease are:
- Target market – have you scouted the area sufficiently to establish whether the franchise’s target market is abundant in the location you’re considering.
- Where your competition is situated – are they in the same shopping complex as you, or are they a little further away. This also applies to fellow franchisees. The aim is to establish your own loyal customer base, not poach from others.
- Rent vs location – it’s all well and good getting a bargain on your lease, but if your customers aren’t prepared to go to you, or they regard the area as undesirable, they’re not going to go there.
- Size of the store – how much floor space do you need? How much does your franchisor recommend? Signing a lease is a big commitment and discovering your location is not what you thought it was can be an expensive mistake.
A perfect location is a rare find. More of than not, choosing a location is a compromise between the ideal and what you can afford.