NewsExpress banner First Bank Fashion Souk Fidelity bank card banner Umm Sulaim's Thoughts Camano banner

Buying a Franchise: When you need to worry about location

By News Express on 16/01/2017

Gmail icon

Views: 2,039


Let me start off by sharing my view on “location, location, location.”

While it is true that securing a great franchise location can be critical to your success, it’s only one of many things that can contribute to your ultimate success as a franchise owner.

Most of the people I work with me, who use my franchise ownership advisory services, bring up “location” pretty early on in our discussions. They are really focused on getting a good location for their yet-to-be-chosen franchise business.

While the importance of choosing and ultimately having a good location can and sometimes does dictate the success of a franchise business, it’s a massive waste of time for my clients (and you) to allow location-related thoughts to occupy a lot of your time as you try to find that perfect franchise opportunity.

Tip: Don’t obsess, worry, or even think about location until you decide on a specific franchise and you are towards the end of your research process.

Should I trust the franchisor to pick a good franchise location? In a word: Yes! Of course.

Why wouldn’t you trust the franchisor to help you secure a good great location for your franchise business?

Don’t you think they want you to succeed, Stop with the paranoia. Don’t listen to people that have "heard” of franchisors that have purposely picked bad locations for their franchisees.

Here’s why it behooves on you to ignore petty comments like that:

The more you make, the more the franchisor makes –

If you become the owner of a franchise business, you’ll be sending in a monthly royalty cheques to the franchisor. It could be 4 to 10 percent of gross sales. So, if your franchise does 40 million Naira in annual sales, and the royalty is 6 percent, the franchisor gets 2.4 million Naira from you. And, they get 6% from every other franchisee, too. Do the math. The franchisor wants you to succeed. They want you to send them big, fat, cheques – every month, for the life of your franchise agreement, which is typically 10 years.

They want your location to be a winning one. And, if they want to be a successful franchisor, they need your franchise location to be a successful one. They need you to be successful.

So, you will handle calls from others (like this potential franchise owner) who are interested in the franchise just like this:

Choose, research and purchase

Do it in order. Make sure you’re a fit for franchising; choose a few opportunities to explore. Explore them. Learn about them. Do great franchise research. Write a formal business plan. Apply for a franchise loan. Make your decision. Find a great location. Open for business.

I hope you would have enjoyed the various perspectives of this lesson to consider when choosing franchising as a business model. For further details you can contact me for business advisory services and training, send me a message via WhatsApp or SMS.

•Lawrence Nwaodu is a small business expert and enterprise consultant, trained in the United Kingdom and the Netherlands, with an MBA in Entrepreneurship from The Management School, University of Liverpool, United Kingdom, and MSc in Finance and Financial Management Services from Rotterdam School of Management, Erasmus University Netherlands. Mr. Nwaodu is the Lead Consultant at IDEAS Exchange Consulting, Lagos. He can be reached via nwaodu.lawrence@hotmail.co.uk (07066375847).

Source News Express

Posted 16/01/2017 9:21:15 PM

 

 

CLASSIFIED ADS

 

You may also like...
Nnamdi Kanu drags Nigeria to ECOWAS Court, demands...

Judge’s death stalls trial in N250m libel suit...

Muslim rights group rejects NYSC orientation date, declares...

Abia institutes university scholarship for best WASC students...

‘Women are being forced to sell their kidneys’...

Interpol chief vanishes on Chinese trip

Airtel unveils new number range, 0701

UNICEF announces job vacancies in Abuja, Ondo and...

FRSC redeploys 109 officers in major shake-up

THE GLOVES ARE OFF: Educating House of Representatives...

Ship owners beg NIMASA for national carrier status...

Localised rains likely today over Enugu, Benin, Owerri...

 

Latest News Oraifite Murders: Tension amid police manhunt for IPOB lawyer Nuclear power stations in Kogi, Akwa Ibom can wipe out Nigerians, others — Scientists APC governors, others move to reconcile Oshiomhole, Obaseki Restructuring Nigeria unavoidable — Fayemi Spain attack: IPOB lied — Amaechi Re-arrest of Sowore and Bakare a tactical blunder, says US-based lawyer How Kwara Governor, Speaker escaped EFCC investigation University lecturers must enrol in IPPIS — Buhari 2023: Rivers governorship not turn by turn — Wike 44 fake tertiary schools discovered in Bauchi EFCC probes NPC Directors for alleged 280m contract scam Missing cash at Bayelsa Govt House: Dickson orders quizzed security men to keep mum

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (569,862 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (455,744 views) Shameless Genevieve Nnaji exposes breasts in public (405,572 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (340,644 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (307,073 views) 10 cars more expensive than Jets (290,958 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (260,888 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (259,748 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (241,196 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (227,762 views) Lagos plane crash: Journalist releases victims’ names (203,546 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (200,019 views)

 

CBN milk production

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (111) Business & Economy (4,615) Business Verdict (89) Columnists (1,156) Complaints & Requests (97) Enterprise & Opportunities (221) Entertainment (716) Features (852) Global Business Monitor (497) ICT Monitor (72) International (4,308) Interview (219) Live Commentary (30) Love Matters (177) Maggie's Blog (510) News (54,972) Opinion (1,436) Pidgin (18) Politics (11,858) Religion (1,132) Sports (2,248) Stock Watch (40) AMA & Al Jazeera Global Update

 

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera