3.01 – Surveying Your Options for Locale

Franchising thrives when each location in the chain ensures customers experience consistent quality and service, no matter where they are. Achieving this consistency involves thoughtful location selection, design that appeals to customers, and ensuring convenience for shoppers. Your management and staff must deliver on your brand’s promise reliably. Great franchisors teach you how to achieve these standards, sharing their formula for success.

Surveying Your Options for Locale

Depending on your franchise, you’ll encounter various types of locations to establish your business. Good franchisors analyze successful operations within their system and provide franchisees with profiles of ideal locations. Options range from office spaces in high-rise buildings to home offices, with most falling into the categories below.

Considering Common Site Options

Here are typical location types for franchises:

Malls

Malls are large, enclosed shopping facilities anchored by major retail stores and serving a wide geographic area. Easily accessible by car and surrounded by ample parking, malls are natural draws, attracting large numbers of potential customers. However, they come with high costs, including rent, common-area maintenance, and merchants association fees. Additionally, malls may impose operating hour restrictions and require you to maintain certain aesthetic standards.

Neighbourhood Shopping Centres

Anchored by supermarkets and featuring a variety of convenience-oriented stores, neighbourhood shopping centres offer reasonable rents and draw customers from a one- to three-mile radius. These centres typically have few signage restrictions and are ideal for retail and service franchises.

Community Centres

Community centres serve local populations within a six- to seven-mile radius and typically have multiple anchors, such as supermarkets and drugstores. These centres often have out-parcels for businesses needing high visibility from the street. While signage limitations may exist, these centres are attractive for various franchise types.

Lifestyle Centres

Located near affluent residential areas, lifestyle centres are open-air setups with upscale national specialty chain stores, dining, entertainment, and ambient design elements. They don’t usually have traditional anchor stores but attract visitors with multiplex cinemas, large bookstores, and specialty retailers. While appealing, these centres can be expensive and must align well with your business concept.

Power Centres

Power centres are open-air locations near regional or super-regional centres, featuring at least three big-box stores like Walmart or Home Depot. Drawing customers from a five-mile radius, power centres are convenient but often involve higher competition.

Other Centres

There are various other development types where retailing, entertainment, employment, and tourism converge, such as:

Shopping Areas

Shopping areas serve local communities, with downtowns (central business districts) benefiting from office workers and visitors. While these areas can be expensive and have inconsistent traffic patterns, they provide prime locations for franchises.

Off-Street Sites

Off-street or captive-audience venues are less accessible but offer significant opportunities. These include locations like gas stations, hospitals, airports, colleges, and kiosks in high-traffic areas like stadiums or parks. These sites benefit from built-in customer flows but may face seasonal or event-related fluctuations.

At-Home Sites

Many franchise systems, especially service-oriented ones like carpet cleaning or maintenance, allow franchisees to work from home. This reduces overhead and offers convenience, though it may limit certain business activities.

Dual branding: Sharing your space

Dual branding involves two or more franchises sharing the same premises, offering a one-stop shopping experience. This setup can use labor and real estate more efficiently, expanding operational hours and customer reach. However, it requires coordination and adherence to standards from both brands.

When choosing a location, consider the customer flow, costs, and compatibility with your business concept. Your franchisor can provide guidance on the best site options for your franchise type.