Technology won’t help you succeed at a bad franchise location; nothing will.
It’s no secret that franchisees (and franchisors) live or die when they choose their location. That’s retail… and nothing will change that. Nevertheless, there’s something I want to share with you.
A Food Franchise Location Story
Last year a smart new food franchise with about a dozen locations and serious ambitions for rapid growth invested in one of those “enterprise style” site location services to help them with their site selections. They found a franchise location. It looked like it had great traffic—great everything—looked perfect for them. After a consultation they invested in the lease and build out. A year later that location is doing only 20% of their expected sales. As you can imagine that’s a real disappointment and a significant financial loss. This is not the result that the service, the broker, and the consultant predicted.
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The franchisee wasn’t too happy, either.
The Good News Is…
The franchise is continuing to expand, and fortunately they’re based in Austin, TX.
In Austin they met a team of technology and business people who have struggled to solve a huge problem for retailers. This team has been stealthily perfecting IdealSpot.com; a new service that analyzes thousands of demographic, psycho-graphic, social, mobile, and traffic data points for every retail location, store, office, or restaurant. It then reports, without human bias, if the location is ideal for your franchise business.
The franchisor was skeptical about the service, so they didn’t tell the IdealSpot team the entire story. So what happened when the restaurant franchise challenged IdealSpot.com’s big data algorithm by asking about the disappointing location? The IdealSpot algorithm immediately reported that this was a flawed location and that the risk analysis predicted approximately 20% of their best location’s performance. The best part is that the risk analysis didn’t take weeks to model but just a few days. It didn’t cost tens of thousands of dollars either.
It was less than $200.
The Importance of A Great Franchise Location
Most of the people who work with me bring the topic of location up pretty early in our discussions. If I was the one looking for a franchise to buy someday, I would do the same thing.
You’ve probably heard the mantra, “location, location, location.” As a franchisee, your franchise location is critical to your success. A great location allows great things to happen. A lousy one, not so much.
Franchisees go out of business every year because of lousy locations.
The importance of having a great franchise location can’t be overestimated.
It’s too bad there isn’t an economical way to do a location analysis…one that can predict a franchise location’s success before a commercial lease is signed.
Or, is there?
Finally! A Way To Predict If A Franchise Location Will Be Successful
Before IdealSpot, the kind of analysis needed to predict a franchise location’s success was not practical-economically, for the vast majority of businesses. Many businesses lost weeks of effort and tens of thousands of dollars trying to conduct the analysis themselves – with no clear results. But now, for the price of dinner at an upscale restaurant, IdealSpot can conduct a massive data-driven risk analysis that will provides concise feedback on every location selected. Hard (and crucial) number crunching and market research is done for you by IdealSpot.
(Did you hear that franchisors?)
Companies like McDonald’s, Walgreens, Dress Barn, Petco, Starbucks and others have invested tons of money pulling together data about the locations that interested them. Their teams spend weeks or even months collecting and analyzing all this data before they make a decision to move into a new location. These companies don’t succeed because they had the best coffee or burgers. They succeed in part because they also choose ideal locations.
Why would you choose a location without crunching all that data?
Check out IdealSpot. They offer a 100% money back guarantee, and I’m sure you’ll be grateful to have an unbiased risk analysis in front of you when it comes time to choose your franchise location.
IdealSpot.com is worth checking out. For franchisors and franchisees.
Tell them The Franchise King® sent you.