Published: November, 2018
The success or failure of your franchise hinges upon one thing: location. The location you choose for your franchise will be the deciding factor in whether you become the owner of a booming business or will be forced to shutter your windows only a few months in. However, many potential franchisees are intimidated by the process of selecting a location, so much so that they miss the opportunity to become a successful small business owner. Fortunately, with the right advice and support, finding and purchasing the right location for your franchise is fairly easy.
Get Advice from Someone More Experienced
If this is your first experience starting a franchise, then chances are you are unfamiliar with all the details of selecting the right location. Because you are inexperienced in this area, it is important that you consult somebody who has gone through this before. Your best source of information is your franchiser and your franchise agreements. The person who has granted you a franchise will have gone through the process of finding a location and your franchise agreement often contains rules as to the types of locations you can consider. Consulting these two sources should be your first step in finding a franchise location.
Do a Deep Analysis of the Location
You are Considering Once you’ve found a likely location for your franchise, your next step is to make sure the area you are planning on building in will be able to support your fledgling franchise. You should do comprehensive research on things like the amount of traffic in the area, if there is a similar business nearby, and if there are any upcoming building projects that may affect your franchise. If you find that the location you’ve selected is suitable for your potential franchise, you can move forward with purchasing the land and beginning construction. However, if there are any glaring obstacles, you should keep searching until you find a better piece of property.
Fully Understand Your Lease
After you are settled on a location and preparing to sign your lease agreement, you should pause to make sure everything is in order. First-time franchisees may not do their due diligence and end up entering into a lease agreement that doesn’t fit with their franchise requirements, causing massive legal headaches and possibly a loss of capital. Before you sign on the dotted line, go through the lease agreement with a fine tooth comb and make sure that it fits both you and your franchise. If not, then you may have to consider locating your franchise somewhere else.
Get a SBA Loan for Commercial Real Estate with a Trusted Community Lender
Now that you’ve finally found the perfect location for your brand new franchise, you need to get access to the funding to purchase the commercial property and get construction underway. Luckily, SBA loans for commercial real estate provide great terms and the type of funding you need to start a successful franchise. To get an SBA loan for commercial real estate to start your franchise, you need to partner with a trusted community lender like Fidelity Bank. Fidelity Bank is proud to be an SBA preferred lender with a long history of connecting small business owners with the funding they need to succeed. Contact us today to start the process of getting the funding for your new franchise.