time to franchise


When starting a business, you can either start from scratch or invest in a franchise. The latter is considered less risky than the former, since you can rest assured the brand already has a reputation. This also means you don’t have to invest a lot of money just so your brand can gain some recognition. That’s the main reason research shows franchises have a 90% success rate. (1)

Unfortunately, having a franchise doesn’t mean you’ll just have to sit back and watch your bank account grow. In fact, you still have to consider important factors so you can have a profitable venture. One of these is the location of your business. Your franchise location serves as one of the key factors for your brand to succeed. With a well-planned location, you can get sufficient foot traffic and exposure needed to gain a handsome profit.

If you’re planning to franchise a business, here are some key considerations when choosing a location.

4 considerations when choosing a franchise location

  1. Choose the city or town

When choosing a location for your franchise, the first thing you need to consider is the city or town. Ideally, you want to set up a store in a place with a large population and one that has experienced steady growth for the past couple of years. This is because a steady growth of people is an indicator a city or town has a strong economy, which means your franchise will also thrive if it’s located there.

For example, if you’re planning to open a franchise in New South Wales, consider a location that’s strategically placed, like Hunter Economic Zone Kurri Kurri and similar areas. A strategically placed location means the area has convenient access to the road, gas, as well as energy. This way, you can ensure your franchise won’t experience any inconvenience.

  1. Consider the demographics

After selecting a city or town, the next thing you need to understand is the demographics of the area, particularly if the location has your target customers. In all forms of businesses, the customers are always the centrepiece. Try to know the details about where your target customers live, the nature of their work, and even their spending habits. By knowing the demographics before determining a location for your franchise, you have a higher chance of boosting your sales since your target customers can easily access you. (2)

Additionally, if you consider the demographics of the area first, you’ll avoid the mistake of establishing a franchise that’s too far away from your target customers, or you don’t risk paying expensive rent without a positive return on investment. Even if the location is filled with people, if these aren’t your intended customers, you won’t find success in that location.

For example, if you’re planning to franchise a restaurant, it’s best to choose a location that’s thriving or has plenty of foot traffic, such as a business district. Although this type of location may come with expensive rent, you can ensure your franchise won’t be empty. On the other hand, if your franchise doesn’t rely on walk-ins, like a cleaning business, you can resort to a less-populated area since the rent is typically lower.

  1. Keep the laws of the city or town in mind

Every town or city has its respective laws on how a business should operate. For instance, tax laws differ from city to city or town to town. Some may even restrict the operation of specific types of businesses.

Failure to comply with these laws may result in hefty fines. This is why it’s essential to understand any legal matters first and make sure you have the necessary permits before opening a franchise in the area.

  1. Think about cost

If you’ve already settled the above considerations, the next thing to take account of is the cost of the rent. You shouldn’t immediately put off those that come with a hefty price tag. It’s because the cost may already include service, support, or amenities.

Ensure you’ve also conducted enough research about the location. If you think the cost of the rent is justifiable because your target customers are there, you should definitely consider the place. You don’t want to settle for a less expensive option but skimp on the demographics.


In addition to the brand’s reputation, the chosen location for your franchise outlet is also an important factor in the success of your new business venture. For this reason, you should definitely conduct the much-needed research before determining a location. Fortunately, with the tips mentioned above, you now have a brief idea of how to choose a place for your franchise outlet.


  1. “How to Attract Franchise Investors”, Source: https://www.entrepreneur.com/article/79492
  2. “How to Choose the Right Location for Your Franchise”, Source: https://www.franchisegator.com/articles/how-to-choose-the-right-location-for-your-franchise-12513/