How Relocation Can Open Doors to Exciting Franchise Opportunities

Location is the key to most businesses, and entrepreneurs typically build their reputation at a particular spot 

— Phyllis Schlafly (Activist & Attorney)

Do you own any kind of brand franchise, and it’s not doing well? This can happen because of several reasons and can affect your financial health negatively. One of the major causes is not setting up your franchise in a good spot. 

According to ResearchGate, “The geographical aspect of an establishment is a strategic decision of major importance for companies. In the case of franchising, the peculiarities of the system render this decision of vital importance.”

If you’ve already made a bad decision, then you should know how relocation can open doors to exciting franchise opportunities. So, make sure to read carefully and don’t miss out on any details. 

Different Cities Offer Unique Franchises

One of the most exciting aspects of the franchise biz is that there is such an enormous array of options at your feet that you can choose something that happens to appeal to you and your desires. And with the added guarantee that you have the power and size of these behemoths at your back.

But not every place will offer the same chances for sale. In some cases, you could potentially find that the franchise you want to purchase is either unavailable in your location (which can present an intriguing possibility for first-mover advantage, but more often than not, is because it isn’t viable) or they just don’t see any value on that geographical region.

For instance, if you want to join the 7-Eleven network, you might need to select an area with a specific population size and density for them to provide the help you need to start up.

Not only this, but because many of these franchises require a decent chunk of change to set up, it’s in your interest to choose a site that’s increasingly likely to bring in customers who will help you recoup your investment and start making real money.

Relocation Introduces New Market Possibilities

Different cities and regions offer unique possibilities that can help to make the process of becoming franchises far more palatable. For example, it could be that you want to relocate to a place bereft of the franchise you had your eye on.

This gives you the possibility to become the first one to sign up and profit from the initial influx of cash from customers interested in something different. Conversely, it could be that a certain place already has lots of options that you can take advantage of because of the sheer weight of customers.

In the infographic below, you can see the 15 largest fast-food restaurant chains in the world. And you might want to open one of them.

Customer Demographics Can Be More Or Less Beneficial Based On Location

Demographics play a significant role in how popular a franchise or, indeed, any sort of business will end up being. As an example, it may not be a good idea to open up a brand-new Starbucks in a university town, given the current backlash against that particular brand.

However, it might be a great idea to start something like a Cartridge World USA branch where those students can come in for the things they need for their studies.

While this is quite a broad-ranging example, the point is that with a bit of research on the major demographics in a particular area. You will be able to come to a far better-informed conclusion about where to put your money. 

Research Local Competition For Insights Into Whether A New Place Is Right Or Not

Some areas can be overly saturated but may still be crying out for more capacity for a specific product, while other areas could indicate little initial demand but, with a bit of marketing effort, might end up becoming a huge success.

The best way to figure this out is by studying your competition. This way, you’ll be able to get all the needed tools that will help you set things up and figure out competitive strategies before you make any investment. 

In some cases, it may be the case that after all of your research, your current spot bodes better than moving, while in other cases, the possibilities that exist elsewhere may be too tempting to ignore.

Local Trends Influence Franchise Decisions

Local trends reflect local economic realities, shape consumer preferences, and affect market saturation, making your selection extremely important to get right before putting in your hard-earned money.

Outside of this, things like cost of living and income levels will dictate if it’s possible to achieve success and even, if so, in what capacity. Franchising is no different from any other form of business, as your goal is to generate great revenue and profit. 

If you fail to choose a great site, these numbers will be significantly lower than elsewhere. 

New Locations Create Fresh Partnership Opportunities

Something not often considered in the pursuit of opening a franchise is the possibility of partnering up with others to expand and control a local market. It’s easy to fall into the trap of believing that a franchise is a one-person operation.

But because of the possibilities they present and the backing you have of an established brand, scaling up is often only a case of finding some extra money and spreading the risk. So, checking to see which areas tend to be most conducive to finding potential partners could help you narrow down your shortlist of places. 

DID YOU KNOW?
McDonald’s is considered the world’s most valued food franchise. In 2023 its estimated value was $191.1 billion!

Some Cities And Municipalities Are More Business-Friendly Than Others

Shifting is never a choice to be made on the fly, and it requires a significant upheaval, especially if you have a family. But it is for sure that it can have a huge impact on your sales and help you gain an increased percentage of income. 

This is because some cities, countries, and states are simply more business-friendly than others and involve less red tape and expense to set up, hire, hire the right staff, and include tax deductions for various business endeavors. 

Relocation is not something to take lightly, but when it comes to setting up a fresh franchise (or expanding operations), then it might be too good an opportunity to pass up. As long as you do your research and have good reasons for moving, you likely find that this will be the best choice you can make for your nascent business.