Experienced franchise owners understand their business like the back of their hand. After years in the industry, they know what customers are looking for, the most efficient ways to run their business, and how to eliminate obstacles before they even appear.
And because entrepreneurs often enjoy a new challenge and opportunity, it’s common for franchise owners to consider opening a second location once their first is running well. However, expanding to a new area can present a few challenges that franchise owners should be aware of.
Opening a Second Franchise Location: What to Know
Opening a new location, especially one in a different state, can pose a new learning curve for franchise owners.
Get to know the local demographics.
The clientele at your second location might vary drastically from the customers at your first. Because understanding your audience is a key aspect of having a successful business, you need to learn population size, general income level, and home type of the new area. Then, you need to consider how that will affect what customers value most (affordability, service options, hours of operation, etc.)
Local laws and regulations.
Laws regarding small businesses vary greatly from state to state and even town to town. Brick-and-mortar stores tend to have more regulations than digital ones, so it’s important to understand how any new rules will affect how you run your business. Especially if you’re looking to open a business in a small town with more antiquated laws, you may run into many rules regarding parking obligations, hours of operation, and storefront size.
Due diligence is key when looking to expand a franchise. Ideally, you would want to look for underserved markets that would welcome your business. And while no competition in the area is the ideal scenario, having similar businesses in the area shouldn’t automatically rule an area out. If the only local competitor has a bad reputation, weak customer base, or there is plenty of demand to go around, your business may still thrive in that region.
Are you looking to be a part of a low-risk, high-growth industry with high rates of repeat customers and a business model that ramps up quickly? If so, we think it’s time you joined the Pack!
To receive your complimentary executive summary and learn more about franchise opportunities, fill out the form below or call us at (870) 600-2713. We’re looking forward to having you join the Camp Bow Wow family.