How a Franchise Agreement and a Franchise Disclosure Document differ
There are two documents that are of vital importance...
Once you've decided to purchase a Canadian franchise and have done your homework and identified your brand, it may seem like all the research work is over and you are on your way. However, there is a crucial component that comes after the initial vetting phase, and that's location selection. Your franchise's location can play a major role in your success, and even if your franchisor has done the homework for you, it's still imperative that you review the data yourself and make the best choice possible.
Understand the concept
Canadian franchises can vary in their customer base, but all of them tend to follow a core concept. Consider your target customers and where they will live. What times of the week and day will customers usually visit your location? If it is on their lunch break, you will want to be near their job sites. However, if the weekend is more likely, being near a park or mall might make more sense.
Work with the franchisor
In many cases, the franchisor has already done location homework and has stats about your target consumers and maybe even potential locations. Because it's in their best interest for you to be successful, their information can prove useful. Review all the data they provide you and take note of the additional insight you are able to learn from it.
Talk to other franchisees
To understand the ins and outs of franchising, you've got to talk to existing franchisees. You should, of course, speak to current franchises about the business model and the brand, but you should also discuss locations. Franchisees who have more than one location should be able to give you some extra valuable insight on what works and what doesn't.
Evaluate your choices
Once you have a few locations in mind, run down the pros and cons of each one. Small details, such as how much traffic the area sees, the atmosphere around the location, and the availability of parking, can help you narrow down the field and bring you closer to a final decision.
Just like the other features of opening a business, finding the right spot for your franchise will take some research, time and planning. However, the time it takes is certainly worth the results, as having the right location is an important part of any successful business.
