The right space can be anything from the mental to the physical, but in this case we are going to focus on the location. The following are some of the key location-related questions you need to ask if you’re looking at which franchise to buy.
How does the franchise operate?
It might sound like an odd question but understanding how you are going to be doing business is a deciding factor in where you need to be. If you are opening a new Cash Converters franchise, for instance, you want to be in a location that has ample parking and easy access for customers who need to carry household items.
In this case you would be buying into a franchise that operates by buying and selling goodsfrom and to people in your community. Some of this will include larger appliances or fragile goods that need to be transported carefully.
As you can see, the type of business you will be doing determines the type of space and location you will need.
Who are your customers?
If you are looking to open a new Cash Converters franchise, like in the example above, who would you expect to buy from you? You will get customers from all walks of life – single moms, millennials starting out and growing families will come to you to buy branded households goods at affordable prices, where wealthier customers will be selling their unwanted quality used goods that they no longer need. Cash Converters stores have a service for everyone, regardless of socio-economic status, so your location should be easily accessible by all economically active people across most standards of living.
Knowing which economic or class sectors you will cater to will help you choose a location as well. By identifying your target markets you can make sure that you set yourself up in a location that is central to your unique customer mix.
What are the franchisor’s minimum requirements?
Knowing how to buy into a franchise opportunity, and where to set up shop, is also largely reliant on knowing what your ideal franchisor requires from you.
A new Cash Converters franchise, for example, will need to conform to either a Mini store format (up to 250m²) or Midi store format (251m² to 500m²) with a separate buy shop that has plenty of customer parking right outside. This makes the process of buying a franchise so much easier, really, because you now know what sort of space you need, who you need to cater to, and how big your location needs to be.
What sort of assistance is the franchisor willing to provide?
Knowing what sort of location to look for is one thing, but actually getting that location is another. Thankfully, most franchisors are aware of this and will show you how to buy a franchise and location, given that you meet their ideal franchisee profile.
Keeping with the example case, when buying a new Cash Converters franchise they will provide a full property consultancy service to assist you in leasing a suitable location. Store design and build is part of a turnkey solution that this franchisor offers as a basic service. This ensures that the new franchisee gets the benefit of group buying power, and the franchisor knows that the new store is 100% to brand specifications.
Download the Cash Converters information pack for a comprehensive view of what they would require from you in order to buy a Cash converters franchise. If you’re up for more research you can read their franchising blog as well.