The Limited Times

Now you can see non-English news...

Franchise: how to find the right location?

2024-03-12T09:53:43.860Z

Highlights: Franchisees must invest 200% in their market research. Using photos and Google Street View, the brand can select and give initial validation of certain locations. Ewigo, a brand for the purchase and sale of used vehicles, targets so-called “number 1 bis” locations, that is to say close but set back from busy roads. Some landlords still sometimes ask for guarantees of 12 months' rent. This is unacceptable for a franchise launch. Even if the franchisor helps you find your location and negotiate the lease, it is the franchisee who will bear the consequences.


Finding a well-located premises and then negotiating with the lessor takes time. The future franchisee must avoid rushing.


For his second Vie & Véranda concession, Luc Artufel aimed for a location visible from the Route des Alpes, large enough to display verandas so that customers can project themselves, with parking and proximity to brands targeting the same type of customers as him. .

It was through a discussion with a real estate agent client from his first agency that he heard about a top location in Doussard (Haute-Savoie), at the other end of Lake Annecy.

“We were two buyers on the spot.

I won the bid and even negotiated a discount of 15,000 euros

,” Luc Artufel readily recounts.

A location validated on site by its franchisor.

We can never repeat it enough, to launch a franchise as in any commercial activity, a good location is the crux of the matter.

To choose a suitable location, you will of course take into account the state of the local market and the network development strategy.

But not only.

“Franchisees must invest 200% in their market research.

Go to the site at different times of the day, discuss with neighboring merchants to find out their target customers, contact the town hall to anticipate possible future redevelopments

,” says Marine Fouchet, head of the entertainment division of Babychou Services.

Read also: Franchise and nomadic trader, it's possible

In the current economic context, it is no longer a question of choosing a location based on the simple conformity of the premises and the general flow of traffic.

“We need to be more and more detailed in analyzing customer flows.

What is the CSP of my clients?

Their age?

Why are they going to this area?

When?

How often?

Walk?

By car?

What are their purchasing habits there?

, lists Sylvain Bartolomeo, associate director of the Franchise Management firm.

The relevance of the choice

For this, you can get help from a geomarketing firm who will analyze all this data down to the street level.

Some franchisors also go into this level of detail.

“Thanks to a geomarketing tool, we know that we have a potential of 850 points of sale in the city center or outskirts.

This tool allows us to analyze street by street and even section by section of street.

Within 200 meters, we do not necessarily have the same turnover

,” explains Benjamin Chambe, development director of Pizza Cozy and member of the college of experts of the French Franchise Federation (FFF).

Once the franchise candidate has been validated, the brand begins hunting for premises by activating its network of national or independent brokers.

Ewigo, a brand for the purchase and sale of used vehicles between individuals, targets so-called “number 1 bis” locations, that is to say close but set back from busy roads, with dedicated parking lots and motorway and public transport access, with premises of between 200 and 600 m2.

With these specifications, the franchisee goes to his area and identifies the locations meeting these criteria.

Read alsoPersonal contribution, the key to financing for a franchise

Using photos and Google Street View, the brand can select and give initial validation of certain locations.

It is by going on site that we can confirm the relevance of the choice which is never easy for the novice, especially in the negotiation phase with the lessor.

“Eighty percent of our franchisees are retraining employees.

They are not used to negotiating commercial leases.

We therefore support them in the negotiation.

The time when landlords and tenants required a doorstep and a right to lease is over.

But some landlords still sometimes ask for guarantees of 12 months' rent.

This is unacceptable for a franchise launch.

We negotiate alongside franchisees for a maximum of 6 months

,” explains Florent Barboteau, founding president of Ewigo.

Never let yourself be influenced

Pizza Cozy also supports these new franchisees at the negotiating table.

“It is today more complicated to negotiate lower rents with institutional landlords than with small owners,”

observes Benjamin Chambe.

For the latter, rent is often an annuity for their retirement.

So they prefer to make efforts and sign with a premium restaurant player than with kebab brands.”

Even if the franchisor helps you find your location and negotiate the lease, keep in mind that you are the final decision-maker.

“I always have reservations about external developers paid on commission or networks that struggle to grow.

They tend to reduce the level of selection of premises to bring in commissions for the former and royalties for the latter

,” regrets Sylvain Bartolomeu.

And if the highly recommended location is bad, it is the franchisee who will bear the consequences and not the franchisor.

So let yourself be helped but never influenced.

Local life is essential

When Gauthier Preynat, a pure Stéphanois, arrived in Marseille to open his restaurant Pizza Cozy at the end of 2021, he discovered the codes of the Marseille city.

“Here, we don’t arrive with our big clogs and we don’t take on the Marseillais head-on

,” he says.

To make his mark, he made himself known to all the neighboring traders, including the pizza maker installed in a nearby truck, and he joined the local traders' association.

“I tasted the pizzas of my colleague from the truck, we help ourselves out in change, in rolls of payment terminals, we discuss our activity

,” he says.

He also asked a local street artist, Azem, to create a mural in his restaurant.

He has just started a “collab” with Maison Mère, a fashion brand from Marseille.

For franchisees, anchoring themselves in local life as soon as they set up is essential.

Objective: to boost its notoriety, of course, but also to make the activity easier.

When her franchise agency Babychou Services opened in Avignon (Vaucluse) in September 2022, Marlène Bergeon signed up to various local business clubs: the BNI, Capaffaires but also the CPME 84.

“The latter gave me awarded the Vaucluse benevolence prize.

Thanks to this, I had several articles in the local press and landed business meetings

,” she says.

The young woman also increased her contacts with the town hall, without much success.

At the Christmas market

Too bad, because maintaining good relations with local elected officials generally facilitates the process of obtaining administrative authorizations (the right to terrace, for example).

Pugnacious, the young franchisee got the number from the city center merchants committee and obtained a location at the Christmas market.

Read alsoFranchise: the keys to obtaining a bank loan

To weave their web into local life, new franchisees also have an interest in getting closer to local sports associations and clubs.

Sponsor jerseys, give away prizes for raffles… Finally, it is important to maintain good relations with your direct competition.

“This allows us to keep informed of the performance of the activity in the area but also to have a pool of candidates for possible recruitment,” underlines Benjamin Chambe, development director of Pizza Cozy.

Source: lefigaro

All news articles on 2024-03-12

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.