Location, location, location! You’ve heard it before, and it is more true today than ever before. Your franchise location can be the sole determining factor in its success or failure if not given enough consideration. This fact is just as true for billion dollar brands as it is for small “Mom and Pop” startups. So how do we know which locations are the best, and what factors do we need to consider when making our decision? We will discuss this, and more in the article below.
Demographics
Anytime a company wishes to open up a new store, introduce a new product, or reach a new audience for its marketing campaign, demographic research takes a top priority before any other decisions can be made. For a new franchise location, this demographic information will be a prime indicator of who your regular customers are likely to be. If your franchise intends to sell expensive products, you may want to avoid locations with lower income housing, or areas with household income lower than the region’s average. A car wash might not be the best idea in a condensed urban area where most of the population walks, or uses public transportation to get around. One great thing about purchasing a franchise is that many of them come with a reliable level of assistance from the franchisor to help you with this research and decision making, to ensure your new location will be a success for you as well as for them.
Competition
It’s a common saying that competition is the sign of a healthy marketplace, but that’s easier to say when you’re not the one opening up a new store. Part of your research process should always include the current level of competition in your prospective area, as well as the potential for future competitors. Is the area already developed, or are you taking advantage of an incentive to set up shop in a new up and coming location? Can you see new shopping centers, or other spaces for potential competitors opening up in the near future? This question may be difficult to gauge in most scenarios, but it is one to keep in mind.
Another great thing about purchasing a franchise is that the best franchises to own will almost always come with territorial rights. This means that once you’ve established your franchise at this new location, other business ventures could not purchase the same franchise and open their doors anywhere within that designated territorial region. This prevents franchisers from “double dipping” in a market area, and you won’t have to worry about someone else attempting to sell your product under the same brand name as the one you just purchased. So while you’re considering which franchise to purchase, we strongly recommend choosing one that guarantees this valuable protection.
Does The Franchise Fit In?
One final thing to consider when selecting your franchise location appeals to a more subjective human element of the decision making process: does it fit in? How well would a new, hip clothing store fit in a gentrified historic district versus a few miles down the road in a more modern shopping center?
The numbers are important indicators, but they can’t replace the value of exercising good judgment. iCode franchisee’s receive invaluable support in selecting their own protected territory based on a number of factors such as population density, number of children in target range, household income and more. Our demographic mapping software pinpoints precise locations where an iCode STEM franchise would make the most impact. If you’re interested in learning more about iCode, please visit our website and set up a time to speak with one of our experts today.
