I’m doing research about opening a franchise, what should I know about before signing a lease?

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 […]


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.

Franchise Zone
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Franchise Zone is published by Entrepreneur Media SA. It offers advice and franchising opportunities in South Africa.

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