Choosing a Strategic Business Locations (Good) One of the most important decisions before starting a franchise business is choosing a strategic location. Why? Because of the location come into play to determine the level of success of your business. If not or do not have a shadow of how strategic the location you want to select, you should ask the franchisor to give a picture of that location. Or, ask for advice to the franchisor which should be the right location for your business.


Typically, the franchisor conduct the study (research) market before giving approval to the franchisee. Research is one of them about the trade area to find a franchise business potential and demographic information related to the location. There is nothing wrong if you ask for a more detailed overview of planned and potential sites. Here are a few that

should be considered in choosing a location.

1. Population density
Population density is one indicator of the huge market potential of business that you want to respective fields, although this has not become final size. You can ask the franchisor, how many total number of people or households who are in your trade area? Is the area still has room to grow? Whether the area was very crowded by the location of housing or apartment and what effect it has on the franchise? How long is the population / population exists in the area?

2. Income
If the population density is not linear with the purchasing power of its people, it means that location is not appropriate. Therefore, you need to look at how income residents in the area of ​​your trade. You need to know, how much the average family income in that area? How many residents of targeted income from your business? Is the neighborhood near like if they offered a product of your franchise?

3. Number of businesses
Occasionally, the selected location is the center or centers of trade. Well, if the number of businesses affect the location? What type of business in that area using a product or service offered by the franchise?

4. Place
There are several types of places to choose from for your business such as shopping malls, business centers, housing, roadsides, and so on. You need to ask, whether the most successful franchisees in the franchise locations such as at the mall, in the most crowded, in a separate section of the mall, stand or separate buildings or in industrial district? Franchisor must be able to provide information about the type of this place.

5. Number of Traffic
How many vehicles passing by at that location per day? Are people passing by will be able to see the sign business (signpost) you? Is the location easily accessible?

6. Downtown
If the location is at the mall, most of the best passing centers are in food outlets. Sometimes, on the other side of the road mall is also a place that was full of people passing and usually rent is also cheaper. Can also be located in hospitals, campuses or centers of people came.

7. Employee access
It could be a location very far distance to be counter productive for your employees. Therefore, the location should be quite close, especially for your key employees.

8. Zone
If the location you choose is not the trade or do not fit with your business, should not be forced. So, you also need to ask, whether the zone locations is appropriate for your business.

9. Competition
Consider also the level of competition you want to run the business. If the site is already saturated with businesses that offer similar products, it may become a strategic location for you. You also need to know what the competition that is closest to your business?

10. Appearance
You definitely want your business and authoritative look at the environment surrounding the location does not interfere with your franchise business. Ask the franchisor, whether the location area is quite clean and under control? Whether the environment is also good enough?
Furthermore, do not ever hesitate to ask the franchisor to help you negotiate to get a strategic location and the rents are cheaper. Because it could in certain cases, the effort is needed, for example by real estate to capture the market.

The following demographic criteria in selecting the location of the top.

Top four
1. Age population to target your market.
2. Number of families
3. Income per family
4. Population
Additional Criteria
1. Competition in the area or location
2. Percentage of population that becomes your target.
3. The number of male and female
4. Percentage of population by income category of potential customers
5. Number of households with income greater
6. Average family income
7. Family the medium income
8. Percentage of residents who educated scholar
9. Percentage of residents who work office
10. Population density.