Franchising by its very nature is all about expansion. The business model is built for growth, it's just how you plan for that growth that determines success. If you have a steady base of franchises and you are ready to actively get more franchisees on board, it is best to know where you want to put them.
Determining the best location for your next franchise store is hard work. A lot of analysis is required to be certain that the locations you choose are the right areas for your franchise and you need to be able to do it quickly and easily.
1. How to identify new locations
To start the process you will need to see where your existing franchisees and their customers. You need to see how far those customers are traveling and whether a new location close to an existing franchisee would cannibalize their customers.
2. How to determine profitability of that area?
When you have lots of data in different spreadsheets with tens of columns and thousands of rows, it can be really difficult to merge them and get a holistic view of the data. You need to combine all of these data sets to accurately determine whether a proposed new locations is likely to be profitable or not.
3. Identify risks associated with the area
When finding a new location to expand your franchise, you need to be aware of all the possible risks and how they may or may not affect the success of that location. You have to be able to see if setting up a franchise here will take customers away from an existing franchise. You also need to know where your competitors are located and what impact that may have on your business should it set up there.