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How to Choose the Location for the New Franchise


No. The good location is not a guarantee for your success! However, the bad location is an almost certain factor for your failure.

The choice of a location for your point of sale is for sure the most important decision for your business, after the choice the franchise itself, of course. It is true that there are businesses that do not necessarily require you to operate a trading site (e.g. if you offer washing machine repair or if you have an online shop) but in the rest of the cases the three most important things for success are: Location, Location, Location. You should allocate additional investment to repair and develop the point of sale, which often amount to a few hundred thousand (levs/euro/dollars), which you will lose if you discontinue your activity prematurely.


You should perform in advance the most important job when searching for an appropriate location – this is the survey part. It would be wise to inspect the reserved plot and to consult your franchisor first. You can contact a reliable, a really reliable real estate agency because the good plots are not marked by a “For Rent” sign. You’ll have to consider well the attitude of the customers that you are targeting, to assess the specifics of your business and only then to weigh up the other factors for selecting an appropriate location that we advise you to consider more thoroughly:

- The stream of people;

- The visibility;

- The reputation of the area;

- The neighbours;

- The competitors;

- Amenities – parking places;

- Rent Agreement – you must review the Rent Agreement along with your lawyer.


Do not be hasty – do not rent the first seen premises no matter how much you like them. Consider at least three other options. Do not try to match the date of loan approval that you apply for and the date when some premises become vacant. You’d better wait for a few months rather than emotionally choose a location that you are not 100% sure that it suits you.  After all, if you are disappointed with the tenants and you have the time and money – why not build your own premises.

Or to keep it short: listen to your mind and not your heart.