When choosing between potential franchise opportunities, there are numerous different factors to consider. Among these factors is the question of where you want to run your business. Do you want to run your business out of your home? Are you interested in a mobile franchise? Or, do you want to lease a retail location where you and your employees will interact with customers?
4 Factors to Consider Regarding Franchise Location
While some franchises offer options, in most cases, whether you operate from home, from a vehicle or from a storefront location will be dictated by the franchise you choose. In any case, when deciding which option is most fitting for you, here are some important factors to consider:
1. Self-Direction and Discipline
Some people are extremely efficient working from home. They have an office that is dedicated to their franchised business, and they have no problem sitting down and working when work needs to be done. Other people find working from home too distracting, with everything from laundry to video games getting in the way of productivity. Operating a successful franchise requires commitment, and if you cannot commit yourself to working from home, then a home-based franchise may not be for you.
2. Storage and Facilities
When leasing retail space, meeting your storage and other facility-related needs is a matter of choosing a suitable location and negotiating the terms of your lease. When operating from home or operating a mobile franchise, there can be more restrictions involved. Will you have enough space to continue operating efficiently as your franchise grows over time? Do you have a place to park your mobile franchise vehicle (some HOAs, for example, prohibit residents from parking commercial vehicles in their driveways)? Could your home eventually become overrun by your franchise?
3. Liability Risk
Operating any type of franchise involves a risk of liability; but, if you operate from your home (and/or from a mobile vehicle), there are certain additional risks involved. If an employee or customer gets hurt at your house, you could potentially be exposed to personal liability. Likewise, if you are involved in a vehicle collision, anyone injured in the accident could try to sue your franchise and you personally. While these liability risks can be mitigated with insurance, they are issues you will want to be sure to address before you open for business.
4. Territorial Restrictions
If your franchise is subject to territorial restrictions, this could be an important factor in where you choose to locate your “headquarters” as well. For example, if you live in a large neighborhood and your territory consists of the area within a specified radius of your franchised business, choosing to operate from your home could significantly hamstring your marketing efforts. Of course, this may be something you can negotiate in your franchise agreement; and, regardless of where you ultimately choose to locate your franchise, you will need to be sure that your franchise agreement’s territory provisions are as favorable as possible.
Contact Franchise Attorney Jeffrey M. Goldstein
Are you thinking about buying a franchise? If so, we encourage you to inquire about our fixed-fee franchise business review services. For more information, please call 202-293-3947 or request a free initial consultation online today.
