First-time franchisees have many things to consider when starting out. They’ll want to minimize the risks that could lead their business to go in the red and fail, after all.
Store location, for instance, plays a huge role in whether your business profits. The amount of foot traffic and potential customers you get relies on where you set up shop. For first-time franchisees, choosing a non-traditional location may be ideal. Food-based ventures, in particular, such as franchises for hotdogs-on-a-stick, waffles, or ice cream, thrive in such locations.
Offbeat Sites with High Foot Traffic
Non-traditional locations are sites with high foot traffic aside from malls or shopping centers. These include offices, hospitals, college campuses, and more. While non-traditional locations are usually smaller, it works better for new franchisees that are still getting a feel of the business.
Opening a franchise store at an airport, for instance, can be a customer gold mine. Airports have stricter regulations, but the benefits are worth it. The number of people passing through airports (and staying due to layovers or delays) allows your small kiosk to have nearly as many customers as a traditional location.
High-Profit Odds for Fewer Expenses
High foot traffic is not the only advantage of non-traditional sites. Its smaller location also offers lower fees and risks.
Non-traditional franchise locations generally come with lower total startup costs and franchise fees. Monthly bills and fees, such as utilities and rent, for smaller spaces are often lower, too. The reduced costs, in turn, equate to reduced risks which are more appealing for first-time franchisees.
Start Out Small before Hitting it Big
Smaller, non-traditional locations provide new franchisees with a perfect jumping-off point for a larger venture. It allows you to get used to the day-to-day tasks of running the business. Focusing on one small franchise, improving its efficiency, and ensuring it earns profit prepares you for larger ventures.
The profit from your successful non-traditional franchise location can serve as the capital to start expanding, whether it’s with a traditional location or more non-traditional ones.
Take note that each non-traditional location has its unique advantages and disadvantages. Carefully weigh your options to ensure the non-traditional franchise aligns with your vision and goals before committing to it.