1851

As a franchise brand grows, one of the most important factors is deciding where to focus expansion efforts. While finding the right franchisees may be step one, finding the best locations for franchisees is another question entirely. 1851 Franchise spoke with experts in the franchise development field to discuss what franchisors should keep in mind when deciding where to grow in 2021.&nbsp;<h4>What Makes a Good Market?</h4>Whether a retail concept or an in-home service, there are a couple of factors that can determine if an area is a strong growth market for a franchise.&nbsp;“First, research the desired markets and determine if there is a need for your offering or business model. If the answer is yes, then proceed with exploring the demographics,” said <a href="https://www.linkedin.com/in/jesse-curry-241730122?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-find-the-right-target-market-for-a-franchise-2714703" target="_blank" rel="nofollow">Jesse Curry</a>, <a href="https://1851franchise.com/franchise-development-leaders-jesse-curry-of-eat-the-frog-fitness-2711209">vice president of franchise development for Eat the Frog Fitness</a>. “How do the demographics (population, income, education, etc.) match up to the brand’s targeted audience? Simultaneously, and especially in today’s environment, do thorough research on your competition in the targeted markets. Find out what differentiators you have or can easily implement. For example, on demand video, drive through lanes, 24/7 access, offer in-home services, stand out pricing, customer service, rewards program or other defining characteristics. If allowable, secret shop them yourself or hire an agency, especially if targeting multiple markets in a region.”<a href="https://www.linkedin.com/in/coreyelias/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-find-the-right-target-market-for-a-franchise-2714703" target="_blank" rel="nofollow">Corey Elias</a>, <a href="https://1851franchise.com/young-ones-to-watch-corey-elias-founder-of-franchise-captain-2714618">founder and franchise consultant at Franchise Capitan</a>, agrees that the primary factor is ensuring there are enough qualified households to buy the product and make the franchisee successful. “Some of the best franchisors are in the business of data collection and analytics; they need to know their target demographic and ensure that any territory they are going to expand into has enough of their common buyer,” said Elias. “Still, one big hurdle to beware of is solely relying on the data. Each market has unique intricacies that the brand should do their best to understand.According to Curry, there are several other factors that can determine a good market for growth. “Other factors that come to light include the labor force and economic outlook,” he said. “This will depend on the type of service you are offering. What are your needs, and what wages will it take to attract good people? More importantly, what will it take to retain your employees?”When it comes to choosing a specific area or site, franchisors should also consider consumer traffic patterns. ”Is there an on and off-ramp or ease of getting in and out of the business park? Does your business cater to day, evening or both traffic opportunities? In most retail businesses, it is all about location, location, location,” said Curry. “With online shopping, COVID-19 and possibly a depressed real estate development period, <a href="https://1851franchise.com/covid-19-and-high-unemployment-set-up-2021-for-franchise-sales-feeding-frenzy-2714528">suddenly today’s real estate environment can favor the tenant and save thousands of dollars over the life of the lease</a>.”<h4>What Should Franchisors Should Be Wary About?</h4>In terms of common mistakes that brands make when growing, Curry mentions that franchisors shouldn’t expand just for the sake of making business headlines or boasting to friends and colleagues. “Before diving into certain target markets, franchisors should dial into all the areas where they can improve, such as franchise training, staff training, hiring the right people, improved digital and social marketing tools for your franchisees,” he said. “Heed the warning signals of under-performing franchisees and immediately address them.”In addition, franchisors shouldn’t spread themselves too thin. “Brands need to have specific growth goals and focus on them,” said <a href="https://www.linkedin.com/in/justin-gordon-34a3703b/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-find-the-right-target-market-for-a-franchise-2714703" target="_blank" rel="nofollow">Justin Gordon</a>, <a href="https://1851franchise.com/young-ones-to-watch-justin-gordon-chief-operating-officer-of-amramp-2711802">CEO of Amramp</a>. “Pick one or two markets and commit to them. Don’t get distracted and listen to the noise of doubters or people who don’t have the brand’s best interest at heart.”&nbsp;If the business relies on vendors or any distribution, franchisors also need to make sure that those vendors work in the new target markets. “It is important for a franchisor to ensure they have enough operational support in their back office to handle the growth as they expand into more markets,” said Elias. “This will set up their franchisees for success.”<h4>How Franchisors Can Spread the Word?</h4>Once the target markets are identified, franchisors can implement several strategies to get the word out for both consumers and prospective franchisees. “Building brand recognition in a new market is a cross-section of luck, referrals, excellent business practices, digital and local marketing, remnant radio, high customer promoter scores, great food, excellent service, partnering with like businesses, community involvement and more,” said Curry. “When entering a new market, franchisors need to find the one significant thing (or more) that separates their brand from the competitors, and promote that. That’s what customers are looking for: differentiators.”According to Elias, the best place to start spreading the word is through current franchisees. “If you are building the system correctly, current franchisees will be your biggest advocates and would love to help grow the brand,” he said.&nbsp;Lastly, Elias notes that once markets are established, franchisors should also involve <a href="https://1851franchise.com/5-tips-for-working-with-a-franchise-broker-2138">the great groups of franchise brokers</a> who can find and advocate for amazing candidates in a certain area and help to match them with great brands that fit their lifestyle and financial goals. In addition, brokers can guide franchisors and show them where there is a high level of qualified candidates or potential for growth.&nbsp;With these tips and strategies, franchisors should be better positioned to go out and find the markets where their brands will thrive.

How To Find the Right Target Market for a Franchise

1851 Franchise

Establishing the right target markets can make or break a franchise concept — here are some tips from experts in the industry.

how-to-find-the-right-target-market-for-a-franchise

Children's Lighthouse

Children's Lighthouse - How Children's Lighthouse Stands Out - Early Education Franchise - 1851

How Children's Lighthouse Is Pioneering Top Notch Curriculum in the Early Education Segment

how-childrens-lighthouse-is-pioneering-top-notch-curriculum-in-the-early-education-segment

How This Children’s Lighthouse Leadership Team Member Applies Her Background in Franchising To Help Franchisees Succeed

how-this-childrens-lighthouse-leadership-team-member-applies-her-background-in-franchising-to-help-franchisees-succeed

Biscuit Belly Franchising

How Biscuit Belly's "Damn Good" Biscuits Are Proving Breakfast Is Big Business 

how-biscuit-bellys-damn-good-biscuits-are-proving-breakfast-is-big-business

Paris Baguette

Paris Baguette's Culinary Creativity Drives Guest Affinity and Franchisee Success

paris-baguettes-culinary-creativity-drives-guest-affinity-and-franchisee-success

Seniors Helping Seniors®

Seniors Helping Seniors® In-Home Care Services Expands in Napa Valley, California

seniors-helping-seniors-in-home-care-services-expands-in-napa-valley-california

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

Login

facebook

instagram

twitter

linkedin

youtube

Fast Company: KFC Introduces Spin Off Restaurant, Saucy

fast-company-kfc-introduces-spin-off-restaurant-saucy

Subway Seals the Deal: PepsiCo Beverages Coming to U.S. Locations in 2025

subway-seals-the-deal-pepsico-beverages-coming-to-us-locations-in-2025

Malaysian Franchise Association (MFA) - AFC and FIM 2025 - 1851 Franchise News

Malaysia Focuses on Franchise Growth Through AFC and FIM 2025

malaysia-focuses-on-franchise-growth-through-afc-and-fim-2025

Hilton and Grubhub Expand Mobile Delivery Services to Over 2,600 Hotels

hilton-and-grubhub-expand-mobile-delivery-services-to-over-2600-hotels

Taco Bell Joins the Beverage Boom With New Live Más Café Concept

taco-bell-joins-the-beverage-boom-with-new-live-mas-cafe-concept

Top Marketing Strategies for Home Services Franchise Brands

top-marketing-strategies-for-home-services-franchise-brands

Tiam Behdarvandan’s Let’s Get Moving Offers a Franchise Opportunity Rooted in Growth and Support

tiam-behdarvandans-lets-get-moving-offers-a-franchise-opportunity-rooted-in-growth-and-support

How To Set up Digital Marketing for Your Franchise Brand

how-to-set-up-digital-marketing-for-your-franchise-brand

Air Force Veteran and Family Find Perfect Fit with TruBlue Franchise in Fort Collins, Colorado

air-force-veteran-and-family-find-perfect-fit-with-trublue-franchise-in-fort-collins-colorado

What Are the Best Burger Franchises To Invest In?

What Are the Best Burger Franchises For Entrepreneurs Invest In?

what-are-the-best-burger-franchises-to-invest-in

How To Find the Right Target Market for a Franchise

MORE STORIES LIKE THIS