After signing a franchise agreement, a candidate selects a place for their new firm. Franchisors rely on prospective applicants to look for real estate opportunities and create their own locations. This holds true throughout the entirety of the industry.
In the same vein, it is becoming increasingly common for franchise owners to continue working full-time jobs after the agreement has been finalised. This is especially the case for individuals who are interested in increasing their income diversity or providing stability for their families during the transition period. It might be challenging for these franchisees to find the additional time necessary to conduct research and obtain spaces that are in accordance with all of the limitations and standards imposed by the franchisors.
Given that a greater number of prospective candidates intend to keep their full-time jobs throughout the development stage, the process of selecting a location for an Auto Insurance Franchise is the first step in putting franchisees on the path to long-term success. The following are three explanations as to why this is the case:
How Franchisees can Achieve Success with Site Selection
1) Ensure that ownership changes go off without a hitch.
Our timetable, which begins with the signing of an agreement and ends with the opening of the business, is longer than most others’; the process can take anywhere from 18 to 24 months on average.
This is in comparison to other concepts. Our in-house real estate team is in charge of the site selection, acquisition, development, and construction of each property, and then subleases those locations to our franchisees so that they don’t have to take on additional responsibilities.
This keeps our franchisees from having to deal with additional work. Franchisees are able to make a seamless transition from the onboarding and training phase to the operational phase of their firm as a result of this, without having to become experts in real estate, demographics, or construction in the process.
2) Establish credibility by making choices based on empirical evidence
Making decisions based on collected data is now simpler than it has ever been before in the context of site selection. Before we enter a new market, our real estate department studies the demographics to determine which areas are most likely to have a large number of customers interested in our services.
An example of this would be when the department is looking to expand into a new market by purchasing real estate. After the possible markets have been located, a member of our real estate team takes a helicopter ride over the surrounding area(s) to observe live traffic patterns as well as current and future development activities.
Before becoming a franchise owner firstly trying to establish a high degree of trust with potential franchise owners, it is helpful to use every source of information that is currently available to validate the success potential of a site.
3) Innovate through methods that are based on the input you get from experiences
Based on current trends in the franchise system and the industry as a whole, it is also important to rethink your site selection process. As the aftermarket industry continued to expand in 2019, our more established shops were busy than they had ever been.
The real estate team added more parking and desk space in response to franchisee feedback.
By innovating and adapting your site layouts and criteria, you can help your current and future franchisees succeed.