What ongoing decisions are necessary about the size of franchise areas?
Answers
A franchise is a business collective venture, where a franchisor sells the authority to employ its idea and the brand.
- The decisions necessary about franchise area size are -
1. Warehousing - An important decision while setting up a franchise is the availability of a warehouse. It is best if the warehouse is near as it will save both time and cost.
2. Competition - The lack of competition is one of the signs that a franchise is a viable opportunity. Although on every corner there may be a cafe, but there are several neighbourhoods that do need health facilities, such as chemist or clinic.
3. Site Selection - It is most crucial as it caters to visibility. If a location is difficult to see or locate, how many people come to it will be greatly limited. A bad position that is difficult to enter can also prevent future customers who are planning to come.