Published on Your Franchise Mentor (http://www.yourfranchisementor.com)
I'm new to franchising. Should I consider a new location from a well-established successful franchisor?
By Administrator
Created 05/27/2008 - 00:19

I strongly recommend against new franchisees building new locations, period. Building a new location requires significant skills that will only be used once, and that the franchisor typically does not train you in. Many expensive time-consuming and expensive mistakes can be made. To build a new location, you will have to find the location (not easy and very risky), negotiate the commercial lease (very specialized and dangerous), hire an architect, obtain all necessary governmental permits to operate, hire a general contractor, manage the architect, landlord, and general contractor, perform pre-opening marketing, hire and train an entirely brand-new staff, and if and when you finally get open, you're going to start out completely exhausted. And you really have no idea whether the location is going to be a good one until you open it and run it for a year. And remember that during this entire time, you have no revenue coming in. It will typically take 12 – 30 months to get a new location up and running.



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