LOCATION INTEGRAL TO FRANCHISING:
A franchise’s location has a great impact on the number of customers a business reaches and also has a reciprocal effect on the business’s performance. FNB Business Banking Franchising head, Morne Cronje, says that opening and operating a franchise is costly and needs industry research and knowledge. “Research on the best location, coupled with thorough competitor analysis could help potential franchisors determine the success of their franchise,” says Cronje. Franchising giant, McDonald’s, which has 185 restaurants across the country, ensures that potential franchisees position their stores adequately, in order to generate traffic to their stores. McDonald’s South Africa Development Director, Wilma Lombard-Maree, says that in places like shopping malls, which generate much customer traffic, the McDonald’s brand influences the micro location as best as it can to become more visible and accessible to customers. “It is pivotal to understand the demographics of the area and customer base as well as asking questions about anchor clients and competitors. Where a new location is offered, sales are unknown and merely an estimate,” says Lombard-Maree.