Guest Post By: Harold Shumacher, President, Shumacher Group, Inc
So you’ve finally decided to become a franchise owner. It might be a restaurant, automotive service, retail store, child care center.
Whatever the business, the most important factor may very well be to find the best franchise location.
When I was new to the real estate industry, an experienced professional told me the three most critical issues in a brick and mortar business are location, location location. Little has changed in this area.
The difference between finding the right franchise location and a mediocre one is best described by the famous Mark Twain quote about the difference between lightning and a lightning bug.
You may ask, “How can I make lightning strike and discover the best franchise location?”
Discover The Best Franchise Location
There are a number of methods. The method I call the McDonald’s approach is to find a franchise location close to your successful competitors. You know the franchise location works, so all you have to do is surpass your competition.
If this approach frightens you, you might try the pioneer approach. Identify a good franchise location with no competitors and dominate the area. You may be able to scare off similar businesses from your franchise location.
The deliberative approach to finding the right franchise location is perhaps the least risky. First you identify your customers, where they are and where they shop. Then, you analyze market conditions. Is the area thriving or declining?
Look at education levels, income, demographics, schools, median housing prices, occupancy rates, access, governmental regulations, crime rates, traffic patterns. All these issues impact your decision for your franchise location.
So you have completed your research. You are now prepared to select your franchise location. What comes next? You can always look around on your own, identify available properties, track down the leasing agent, strike a deal and then pray that you have found the right franchise location.
The better solution is often to find a commercial real estate specialist. This professional can assist you in finding the best possible franchise location.
More Next Month!
Harold Shumacher is the president and managing broker of The Shumacher Group, Inc. an Atlanta, GA based firm that specializes in representing national and regional retail and restaurant companies. Throughout its 25 plus year history, the company has worked with several national franchisors and has helped select hundreds of franchise locations.
If you would like to speak with one of our franchise consultants today, please don’t hesitate to call (706) 356-5637!