Things to avoid in Real Estate as a Franchise

As an owner of a franchise, one of the biggest decisions you have to make is finding the right real estate for your businesses. Successful franchisees are constantly looking for ways to scale and obtain new locations. Everyone has heard the cliché — location, location, location as it pertains to property. It’s said that these are the three most important factors when it comes to purchasing real estate. The truth is that the location of your business is just one of the many factors a franchise owner should consider when looking for real estate. That being said, the location of your business is important, so be sure not to overlook these common mistakes franchisees encounter when looking for that perfect piece of real estate.

1. History can repeat itself

The history of a location can be very telling and extremely helpful in choosing real estate. For example, if you are looking for a new location for your pizza shop and you come across a piece of real estate that appears to be a great location for your business, be sure to research the history of what was there before. You may find that even though the area appears to be perfect, there were five other pizza shops in that same location that failed. That information doesn’t necessarily mean that yours will fail too, but it definitely warrants a deeper investigation into that location before you make a decision.

2. Size matters

Another mistake many franchisees make when looking for real estate is mis-calculating the size of the location they need for their business. Bigger isn’t necessarily better. Every penny counts when building a business, so making the right choices when it comes to any acquisition is important. Just because you’re getting the deal of a lifetime on a piece of real estate doesn’t mean it’s the right choice. Sometimes you’ll find real estate with a great cost per square footage, so the inclination is to take advantage of the price and go bigger. This can be a great opportunity, or it can be an unnecessary decision. Be sure to do your due diligence and run your numbers on all the properties you encounter. No matter how good the deal may look on paper, if you’re purchasing real estate with more square footage than what you actually need, the extra area must convert into profitable space. If not, it’s not actually a deal for “your” business.

3. Building versus buying

The larger the business, the more options you have for scaling and expanding your franchise locations. When deciding whether to build a new location or buy an existing structure, it is important to examine your numbers. On the surface, building a new location may seem to be the more expensive route, but that’s not always the case. There are many instances where the amount of work needed to convert an existing structure into what you require for your franchise location far exceeds the amount it would cost to simply build it. Some franchises have a very particular blueprint that they must follow; that may limit your real-estate options. Be sure to verify that the cost per square foot of the necessary buildout isn’t more than the cost per square footage for full construction. In some areas, these two numbers may be very similar, which actually allows you more flexibility in choosing your real-estate and location options. This can be helpful if you’re forced to follow a particular blueprint or real-estate guideline for your franchise.

4. Brand identity is important

You must choose real estate that will allow you to showcase a cohesive and recognizable image. That being said, not all businesses require the same style of branding. For example, if you’re a franchisee of a major restaurant chain, then it’s imperative that the real estate you choose be recognizable to that established brand. A lot of major franchises will provide franchisees with an outline of building specifications, rules and possibly even approved locations for real estate. But, even smaller franchises should follow these guidelines and ensure that they continue a recognizable vision for their business across all of their locations. This means that even if your particular franchise allows for different styles of real estate, you still need to ensure the locations you choose allow you to use the appropriate signage or color scheme to showcase your brand identity.

5. Marketing matters

Sometimes the real estate you pick is not as important as the marketing you choose. As a franchisee, you may choose the perfect piece of real estate in an awesome area and still have that business location fail. This happens when you place too much focus on the real estate and not enough on the marketing. The real estate you chose is extremely important, but it’s complemented by the marketing you do for your business and its locations. No matter what real-estate decision you’ve made, you need to create a marketing plan for that location. As a real-estate coach, I recommend that as soon as you’ve made a choice for your franchise location, you immediately begin working on a marketing plan. This way, while you’re preparing the new real estate for your business, you’re also preparing the area for your arrival and creating exposure for your new franchise location.

Conclusion

There are many factors that go into choosing the perfect piece of real estate for your business and franchise locations. However, as with every business decision, data and information are king. Be sure to have a business plan before you even begin looking for real estate. A good business plan will provide you with the information and possibly even the specifications needed to assist you in choosing the perfect piece of real estate for your franchise location.

Source: Entreprenuer

You May also Like this

Tips on Real Estate ...

The pandemic may have brought drastic changes to our daily lifestyle, however...

Pros & Cons of ...

 could be a very smart financial decision with proper planning and budgeting....

invest in real estate
Strategies to Invest in ...

There are an endless variety of ways to , from taking out...

Real Estate Technology Solutions
Recommended Real Estate Technological ...

Online real estate catalogues include virtual tours of sample flats to give...

Diversification
Diversification Vs Specialization of ...

There are two main schools of thought when it comes to :...

Real Estate Trend
The most common Real ...

is one of the most dynamic industries that have seen some major transitions in...

rental property
Can you buy rental ...

You’ve heard that buying a rental property can be a fantastic way...

Commercial Real Estate
The impact of COVID-19 ...

For a long time now,  real estate has been seen as a cash flow-generating...

Real Estate Market
Business Opportunities in the ...

With the economy fluctuating, more investors turn to the real estate market...

real estate professionals
Things Real Estate Professionals ...

During this , social unrest and an upcoming election, a lot has...

Virtual Real Estate
Blockchain Technology to monetize ...

In the “real” world, has historically been seen as a viable investment....

brrrr
What is the BRRRR ...

If you're part of the business or plan on breaking into it,...

Macroeconomic
Macroeconomic Issues in Real ...

Understanding macroeconomic risk is critical to a successful strategy. While this form...

illiquidity premium
What is Illiquidity Premium ...

Illiquidity premium is the excess return an investor stands to earn in...

renewal
The procedure for the renewal ...

According to Section 1 of the , the law vests the ownership of...

pandemic
Post COVID-19 pandemic and ...

Adapt. Innovate. Accelerate. This is the mantra for any business right now...

Real Estate Wholesaling
Real Estate Wholesaling Pros ...

wholesaling is a kind of arbitrage in which a party known as a wholesaler...

stamp duty
The new Stamp Duty ...

Taxes are one of the ways through which the Government generates revenue...

WFH
How Work From Home ...

Google has announced that it will continue with work from home (WFH)...

Investment Portfolio
Investment Portfolio Diversification in ...

Months after the onset of Covid-19, we continue to see its impact...

path of progress
What is path of ...

As a , you may have heard the term path of progress before. The...

Virtual Real Estate
Increase of Virtual Real ...

Prospective buyers getting their first glimpse of potential homes through smartphone cameras...

Property Managers
Operational Guidelines Property Managers ...

The pandemic crisis has thrown nearly all industries for a loop, and...

Commercial real estate
The Effect of the ...

The real estate industry is changing, a change that started before the...

Disruptive Real Estate
Disruptive Real Estate and ...

What do Google, Microsoft, Facebook, Twitter, Visa and American Express all have...

Post-Pandemic
Outlook of Post-Pandemic Commercial ...

The COVID-19 pandemic is having a transformative impact on (CRE) markets. The...

invest in real estate
Reasons you should Invest ...

Your current financial stability doesn’t guarantee that you’ll be free from financial...

Retirement
Real Estate Investments for ...

Real estate can be an incredible tool to help you prepare and...

Real Estate Industry
Tips to better understand ...

If you're looking to buy or sell property, it's important to have...

Real Estate Investment
Ways of getting involved ...

While many people get involved in real estate to generate a return...

value
How to assess the ...

If you’re investing in property, you’ll need accurate real estate valuations to...

Real Estate Investors
Guiding Principles for Real ...

While the national faces significant uncertainty right now, it's important to recognize...

Real Estate Investing
The largest benefits of ...

Real estate is one of the best possible ways to drive personal...

The Real Estate Market
How the Real Estate ...

If you're looking to buy or sell property, it's important to have...

Remote Working
Remote Working and its ...

Many ask if the remote working culture will be here to stay,...

buying and selling
Real Estate Buying and ...

EASTON — agents and their colleagues have adapted quickly to the new...

unstable market
Investing in Real Estate ...

The industry is filled with its share of ups and downs. In...

real estate investments
Real Estate Investments to ...

There are several types of real estate , but most fall into...

office space
Will the Pandemic make ...

A myriad of publications have already pronounced office space a trend of...

How the pandemic will affect Resident Demands in the future
How the pandemic will ...

The current pandemic and global response is a once-in-a-lifetime event that has...

real estate stock market
The effect of Real ...

Financial market commentators tend to focus on the price of bonds and...

digital asset
How Real Estate is ...

Yesterday, I had a call with one of my company’s larger customers....

Real Estate Agents
Ways Real Estate Agents ...

There is a reason companies like Tesla have such a loyal customer...

Commercial real estate investments
Commercial real estate investments ...

real estate investments will fare well in the face of the coronavirus, which...

Operational Real Estate
The importance of Operational ...

New York, NY—With the shift towards buying an experience over buying a...

Passive Income
Ways to Earn Passive ...

Passive income is an important factor in building wealth and achieving financial...

millennials
The Future of Real ...

We've all seen studies on millennials circulating around the internet. As the...

land
Things to consider before ...

Looking to buy land to build your dream home? Land is the...

Angel Investing
Angel Investing versus Real ...

I’m often asked what my preference is when comparing angel investing to...

Bitcoin Investment
The comparison of Real ...

Two popular avenues, real estate and bitcoin, have been making waves in...

mortgage
How to find the ...

If you’re looking to buy a home or in a single family...

Reserves
The importance of Reserves ...

Private real estate affords investors considerable control over their , from how...

attorney
The importance of an ...

Engaging the right attorney helps you avoid costly mistakes in deals. Especially...

bundle of rights
The comparison of bundle ...

What is “,” really? Most people might say it's the land and/or...

Lagos State Real Estate Law
Laws guiding the Use ...

The regulatory bodies in real estate include but are not restricted to the following;...

Commercial Real Estate Tech
2020 Top Commercial Real ...

Deloitte’s 2020 Commercial Real Estate Outlook surveyed 750 owners, operators and investors in 10...

Mortgage notes
Guide on investing in ...

Most new investors in active real estate start with a traditional method...

real estate rehab
Stages of Real Estate ...

If you play your cards right, rehabbing houses can be very rewarding...

Multifamily
Investing in Multifamily Real ...

Millions of Americans depend on cash flow generated by long-term investment portfolios,...

ways to invest in real estate
Ways to invest in ...

There is a common misconception that real estate investing requires property ownership....

rental properties
Pros and Cons of ...

Many investors understand why they should invest in real estate for the...

urban regeneration
Planners urge Lagos State ...

Planners have charged the Lagos state government to do more detailed master...

Commercial Real Estate Technologies
Trending Commercial Real Estate ...

The commercial real estate industry has entered a new phase of technology...

Real Estate Location as a franchisee
Tips to secure the ...

Real estate site selection has the power to make or break any...

Remote Workers
How Remote Workers affect ...

As more people are able to work from home, housing priorities have...

5G Technology
5G Technology REITs

There is a revolution going on. You’ve probably heard the term 5G...

buyers
Questions Home Buyers should ...

Buying a home is one of the most expensive decisions you'll ever...

remodeling
Mistakes to avoid when ...

Americans are spending less on home renovations than they were at this...

Real Estate Market
Reasons for investing in ...

Are you thinking about purchasing your first piece of real estate? Investing...

real estate funds and REITs
Differences between real estate ...

Are you ready to invest in real estate? Real estate funds and real...

Agents and Brokers
Differences between Real Estate ...

Real estate transactions often involve significant amounts of money. As a result,...

real estate crowdfunding
Real Estate Crowdfunding Investment

Ask a rich person how they got rich, and there’s a good...

Investing Real Estate Market
Investing in the right ...

Investing in real estate is tremendously exciting, and can be very lucrative....

housing in Nigeria
FMBN to build 100 ...

Ahmed Dangiwa, Managing Director, Federal Mortgage Bank of Nigeria (FMBN), said the...

local real estate market trends
Factors that determine Local ...

Real estate markets trend between times of boom and bust, depending on a...

invest in real estate
Affordable ways to invest ...

Real estate can help diversify a portfolio. One way to grow your...

real estate digital finance
8 top concepts of ...

In all history there has never been a more profound era of...

appraisal services
Why you need appraisal ...

Real estate investing can be an excellent way to earn passive income....

Real Estate Investment
Determining your Real Estate ...

Malcolm Gladwell states that it takes 10,000 hours of practice to become...

real estate agent
12 Qualities in Selecting ...

Purchasing a home is a huge financial commitment, so finding the right...

National Urban Development Policy
Revision of the National ...

The long-awaited overhaul of the National Urban Development Policy (NUDP) has been...

Warehouse
Capitalizing on the Warehouse ...

Everyone knows that retail is evolving, and common thought says that retail...

Mixed-Use Real Estate
Benefits of Mixed-Use Real ...

In cities, mixed-use real estate is hidden everywhere. Someone likely lives above...

dead capital
Real Estate Dead Capital ...

PwC estimates that Nigeria holds at least $300 billion or as much...

Post your Comments

NAME *
EMAIL *
Website

error: Content is protected !!
%d bloggers like this: