Jim Laganke: Tips to determine the success of a franchise business in your city or town

Now that you’ve decided to buy a franchise business, you might have already shortlisted a few options to invest in. Maybe your preferred franchise business is well-established and gaining humongous success in other cities or towns. But it's not necessary that you will get the same response from your city as well, says Jim Laganke. This is why it is advisable to do some research work before signing any agreement papers.

According to the owner of a famous restaurant chain, Stewart’s All American, in the US, you need to know what kind of businesses are there in your city and neighborhood. This will give you an idea of whether you’re investing your hard-earned money in the right place or not.

Here are some of the things you need to consider to determine the viability of a franchise in your city.

Does your city already have this type of franchises or independent businesses?

Let’s understand this with an example. If you’re planning to invest in a coffee franchise, you need to know all the coffee providers in your area. Suppose, there are three outlets of Starbucks, you should be informed about this, as it is your biggest competitor. Also, you need to look for other coffee franchises and independent coffee shops. Although coffee is popular worldwide, there is no surety whether you will survive in this highly competitive world or not, until you have a well- planned strategy.

Where this type of business will have the greatest growth opportunities?

If you want to make your franchise business successful, you should find the right location to set up your business. For example, you can’t open a coffee shop next to your home just for convenience where growth opportunities are fewer. Therefore, before you make a final decision, spend some time knowing about your place properly and then choose a suitable location.

In closing

These are the two major things that help you determine whether you should invest in a particular franchise business or not. Apart from this, you also need to be familiar with your alternatives. This is because if your preferred franchise didn't prove to be an ideal business option for your town, you should have a backup or exit plan.

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