The need to have a great location in New Jersey varies from franchise to franchise. For some types of franchise, the location is relatively unimportant – these are sales driven, service based franchises such as Sandler. With other franchises, the franchisee doesn’t have to worry about the location because the franchisor chooses it for them and sign the lease – as it is with the case of Super Cuts. But there are other types of franchises in New Jersey where in which the franchisee may have to choose the location – and how good the location is will have a direct impact on their business. These franchises might include businesses like food establishments or automotive franchises.
So how do you pick the perfect spot? Use the following guide to help you choose the right location.
Talk to existing franchisees
It’s always good to hear from the voice of experience. Ask existing franchisees how they chose their present location. Ask them if they are happy with it and if they would have done anything differently looking back.
Talk to your franchisor
If you are required to choose your own location, most franchisors will either have some guidelines or be able to offer some insight into what kinds of locations work best for their particular business. Remember, the franchisor has years’ of experience and it’s in their best interest to help you succeed.
Is the location accessible to customers?
If your franchise relies on walk-by or drive-by traffic, you’ll want to consider how convenient the location is for your target customers. Is it visible? Is there an anchor nearby? Does it have adequate parking? Are there stairs or other barriers that might make it difficult for customers who are older, disabled, have young children etc.?
Consider the type of building you need
Just because you think a certain building is in a great location for your franchise, the building itself may be wrong. Think about your franchise and what type of space you require and what type of equipment you’ll be using in your business. For example, if your franchise is in the food-service industry, you’ll have very specific requirements such as fire suppression systems, custom venting etc. You’ll also want to know what the maximum seating capacity is.
How much competition is there?
If you intend on opening a franchise in an industry where there is a lot of competition, it’s a good idea to look at what other competition there is in a given area. Too much or too little competition can both be warning signs. For example, if you’re thinking of opening a coffee shop and there is already a coffee shop on every corner, it may be an indication that the market in that neighbourhood is already saturated.
If there are no coffee shops, you might be filling a need – but it could also be an indication that the area doesn’t have a solid customer base to sustain your business.
Is the ROI worth it?
Choosing a great location is likely to cost you more than choosing a location that is merely ok – but truly great locations should be able to bring in more income as well. Don’t be afraid to pay more for a better location for your franchise in New Jersey if you feel the return on investment will be worth it.
About FranNet NJ NYC
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