6 Signs Your Local Area Is Ready to Welcome Your Franchise Business

Modified on - Published on

When to consider starting your own business

You may be ready to launch your new franchise business, but is your local area ready to welcome it? In this article, we run through the signs you should look out for if you want to create a successful business.

You can never be 100 percent sure a business will take off. But there are always tell-tale signs youre set for success. Of course, franchises offer entrepreneurs a great deal of security from the get-go, with a proven business model, established customer base and ongoing support. And, if youve got all the attributes of an entrepreneur the business mindset, the dedication, the passion youre already a step ahead of the rest.

But how can you be confident your franchise business is well suited to your local area? Here are six signs you should look out for if youre about to join a franchise.

1. Your competitors are making money

No matter the type of business youre launching, one of your top priorities should always be to scout out the competition. Take an in-depth look at the types of organisations doing well in the local area and why theyre popular.

Contrary to common belief, having similar businesses to the one youre about to set up in the area is good. Unless the franchise youre joining is highly unusual and youre taking advantage of an incredibly niche gap in the market, you should try to make sure you can find comparable companies. If you cant, you may discover your product or service just isnt in demand locally. Chances are, other entrepreneurs have tried and failed to establish their businesses.

Once youve identified similar businesses, youll want to be certain theyre doing well. As far as youre concerned, there may as well be no relevant businesses if the ones that are there are failing. Head online to visit company review sites like Yelp, and take a look at their websites to see if they have a high volume of positive customer testimonials. If theyre a brick and mortar business with a physical premises, you could even pop in.

2. Your competitors products or services are missing something

Think about the products or services your franchise business will offer. Do they live up to your competitors? If you feel you can go one step further than they have, youll probably be able to attract more customers once you set up shop. Ask yourself, When I compare the products or services Ill offer to those of my competitors

  • are they of higher quality?
  • are they cheaper?
  • are they more convenient to access?
  • are they more attractive?
  • is there more variety?

Ultimately, you should be solving a problem for your customers. And if youre solving it in the best, most convenient or most cost-effective way, youre likely to do well.

3. Customers are interested in your product or service

If you can offer your customers a superior service to other local businesses, youre on the path to success. But you should try to work out whether there is demand for the specific franchise business youre about to launch. How can you do this?

Well, the internet should be your first stop. Join relevant social media groups and get involved in the discussions. Theres no harm in asking others opinions to gauge just how highly potential customers would rate your business. You could also distribute surveys at local events or hold a focus group to get direct, face-to-face feedback from those in the community.

4. People are searching for your product or service

This is a clear sign your franchise business will be in demand when its up and running. If you havent yet decided which franchise youd like to join, think about which types of businesses your local area is lacking. Ask friends and family about the sorts of businesses theyd like to see in the community. You could even go back over products or services youve searched for in the past.

If youve got your heart set on a specific franchise, do a quick Google search to find out whether it offers a valuable product. If you type in a couple of keywords and your location, Google should suggest options based on popular searches for your area.

5. Theres a certain demographic

Depending on the type of franchise business you intend to run, you may be targeting a specific demographic. For example, a home care company will rely on elderly clients, while a dog-sitting business might look for professionals who need someone to look after their pet during the day. Meanwhile, a trendy clothing retailer should be based in an area with lots of young, fashion-conscious consumers.

Theres little point setting up a trendy clothes store in a retirement village or a dog-sitting business near a university campus. So, work out whether your local area has the demographic you need, particularly if youre launching a brick and mortar company without the option to travel to clients.

6. Its got the right infrastructure to support business

Some businesses can survive being based in the middle of nowhere. For instance, working from your home in the rural English countryside is fine if youre offering online services like private tutoring, for example. But youll need to make sure youve got everything you need at your fingertips if you cant operate solely from the comfort of your sofa.

Think about whether there are enough residents in the vicinity and whether theres a bank, post office and transport hub nearby. You should also consider which other businesses your customers are likely to visit, and whether they operate nearby.

Become a franchisee

Weve got a whole catalogue of resources for those ready to take the next step on their franchising journey. Starting a business can be a nerve-wracking and confusing process, and most entrepreneurs have plenty of questions about how to ensure their success.

Take a look at our Become A Franchisee articles for more helpful tips and advice on launching a thriving franchise business.

These articles may interest you

The Ultimate Guide to Franchising Success

Always dreamed of being a successful franchisee? There are a few things youll [...]

5 Great Reasons to Become a Franchisee

Want to start a franchise but not sure if its going to fit with your lifestyle [...]

Franchising 101: Are You Ready to Become a Franchisee?

One important question you should ask yourself if youre wondering how to become [...]

Easy Hacks to Solve These 4 Common Business Pain Points

If youre constantly blighted by the same business pain points, it can divert [...]


How to Start a New Business on a Shoe-String Budget

You dont need a six-figure budget to start a business or even to start a franchise. [...]


7 Common Habits of Successful Franchisees

Ever wondered what the recipe for a successful franchisee is? There are lots of [...]

Did you enjoy this article? Please rate this article
Average rating 4.5/5 based on 3 vote(s)
These franchises may interest you
Nicholas Humphreys Estate Agent franchise

Nicholas Humphreys Estate Agent

The only specialist student letting agency franchise in the UK, with earning potential up to 2.5 times the income of a traditional letting agency

Student and Professional Lettings, Property Management, Residential and Investment Sales. We provide a heavily [...]

Read more ›
Minimum investment
Agency Express franchise

Agency Express

Agency Express is the UKs largest provider of professional estate agency board services

Read more ›
Minimum investment
Christmas Decorators franchise

Christmas Decorators

Lighting Up Businesses & Homes For 25 Years

Be part of The Christmas Decorators the UKs favourite seasonal decorating company. Chosen by celebrities, [...]

Read more ›
Minimum investment
FASTSIGNS franchise


More than fast. More than signs.

Specialised in selling, marketing, producing, or installing visual communications including signs, graphics, [...]

Read more ›
Minimum investment
Access4Lofts franchise


Access4Lofts is a lucrative van-based business opportunity where we help our customers utilise wasted space [...]

Read more ›
Minimum investment


post a comment

Characters remaining: 250