Ask yourself questions to find the right place for your franchise business

So you want to start your own franchise business. But first, you need to have a home for your
business so clients will know where to find you. But where?

1. Where?

Does the office have easy access to shops, banks, other amenities, and major routes? Is it in a
key business district? Remember, more often than not, an advantageously positioned office in
prime areas but are are expensive to maintain.

The location of the office itself inside the building also dictates the price. In real estate, the
rule is: the higher the floor, the higher the value. You are paying for the view, hence the cost.
So if your business requires regular visits from your big clients, consider getting that
penthouse.

2. How much?

The location and price of an office space actually go hand in hand. Monthly rentals of prime
locations are very expensive per sq meter. You can find good alternative locations, but you
must put more into the search

3. What is the nature of your business?

Take into account the kind of business you have and where your market is concentrated. “If
you’re a doctor, you would want your clinic to be inside a hospital or in a building near a
hospital. If you’re a real estate broker, you can have your office right in your own home.

Does your business require constant communication with clients and suppliers? Better look for
an office that already has installed amenities such as phone and Internet lines, so you won’t
have to invest for setup. Do you need to transport products or equipment from one place to
another? Make sure that the building has a service elevator and parking space for these
purposes.

4. Who owns it?

 You won’t go wrong with an owner or developer that has a proven track record. Also, find out
who manages the said building. Having the same company develop as well as run the property
is ideal. That way, your concerns can be addressed more immediately, without passing through
too many channels.

5. What are the rules?

Is the building’s airconditioning switched off at a certain time? How strict is building security?
Can you bring your own furniture in an already furnished office? Who will handle the
maintenance? How many parking slots are allocated to a tenant? Talk to the building
administration regarding these regulations.

6. What else should I ask?

To get value for your money, do a little research. Talk to your prospective landlord, you can
ask the following questions:

 What services are included in the monthly rent?

 What are the terms of payment?
 Who are the other tenants in the building?
 How will staff and visitors get to work?
 How is the traffic going to the said office?
 Can the building administration move quickly to accommodate changes in the business?

With these questions in mind, you can now start looking for an office suited to your company

To rent or to own

Owning your place of business is ideal, but if you're just starting, it's wise to rent your location
first until you have the money to buy the property.

To rent or to own? That is the question. Off the bat, renting the best location puts one over
owning the second best site because the right location often spells the difference between
boom and bust. Renting also has its benefits, especially for starting entrepreneurs. Buying a
business location from the start also entails heavy capital outlay and high costs of construction
and repair. In contrast, renting has the benefit of having a landlord take care of all repairs.

Owning your business site must be part of the goal. "Personally, I consider owning my business
location as a measure of psychological success. It's like announcing to the whole world that our
company has arrived."
 Franchise Location, Location, Location...

Most of thoose who franchise are interested to go into the food business particularly the
foodcart for a start. There's lots of choices and franchise fee is as low as P15,000 (pesos).

But no matter how good or popular your franchise is, your success mainly depends on the
location you have chosen for your foodcart and the target market (For the class A or for the
masses) for your products.

Another inportant factor in choosing the right location for your food cart is the rent. Most of us
would love to put up a stand inside the mall but most cant afford it. But its is also useless to
rent a place that is cheap but has little or no human traffic at all.

Here are some locations you might want to consider putting up your food cart franchise

 Schools - Constant & steady supply of customers. but the disadvantage of schools is
during their christmas and summer vacation because you have no one to sell to.
 Tricycle/jeepney/bus terminals and MRT/LRT stations - Lots of human traffic, from
the masses and working class.
 Malls - You are ensured of 10,000 people going in and out of the malls everyday, but
the rent is expensive and most demand a percentage from your gross sales.
 Government agencies - Also has a lot of human traffic going on and most will be
hungry after finishing their transaction since it usually takes half a day to get things
done in our country.

Answering these 22 questions for each of the sites you're considering can help you decide
on the best retail location for your business:

 Is the facility located in an area zoned for your type of business?

 Is the facility large enough for your business?
  Does it offer room for all the retail, office, storage or workroom space you need? Does
it meet your layout requirements?
 Does the building need any repairs?
 Do the existing utilities—lighting, heating and cooling—meet your needs or will you
have to do any rewiring or plumbing work? Is ventilation adequate?
 Are the lease terms and rent favorable? Is the location convenient to where you live?
 Can you find a number of qualified employees in the area in which the facility is
located?
 Do people you want for customers live nearby? Is the population density of the area
sufficient for your sales needs?
 Is the trade area heavily dependent on seasonal business?
 If you choose a location that's relatively remote from your customer base, will you be
able to afford the higher advertising expenses?
 Is the facility consistent with the image you'd like to maintain?
 Is the facility located in a safe neighborhood with a low crime rate?
 Is exterior lighting in the area adequate to attract evening shoppers and make them
feel safe?
 Will crime insurance be prohibitively expensive?
 Are neighboring businesses likely to attract customers who will also patronize your
business?
 Are there any competitors located close to the facility?
 If so, can you compete with them successfully?
 Is the facility easily accessible to your potential customers?
 Is parking space available and adequate?
 Is the area served by public transportation?
 Can suppliers make deliveries conveniently at this location?
 If your business expands in the future, will the facility be able to accommodate this
growth?

Guides In Mall Leasing

The Mall is the ideal place to setup your franchise business. Popular malls like SM, Robinsons,
Shangri-La attract
thousands of people everyday, here are some guides in mall leasing.

1. Prepare a Letter of Intent

 (LOI) This document is crucial to your application as it introduces you and your franchise
business to mall management. The LOI states your intention to lease space and describes your
franchise business concept, including product line, pricing, packaging and marketing, cart
design, power requirements, brief background on operational procedures, contact numbers,
etc. Depending on how the letter is composed, this could lead to capturing the interest of mall
management and being invited for an interview and product evaluation.

2. Product Testing and Interview

Once you have the mall management’s attention, they will schedule you for an interview.
Here, you will be expected to demonstrate, exhibit, or let them sample your products. It would
be advisable to be in your best element during this day, and to ensure the following are ready:

 2.a) Documents: product concept, cart design, etc.

 2.b) Products: meticulously prepared beforehand
 2.c) Staff: well-briefed, well-groomed and in uniform
 2.d) Operational flow: how products will be prepared and served
 2.e) Marketing materials: how products will be presented in the mall
 2.f) Prayers: for mall management to approve your concept

3. Approval

After the interview and evaluation, it generally takes two to three weeks before mall
management comes up with their decision. Normally, the business owner receives an offer
sheet from the mall management, indicating the rental fee, area size, actual location, security
and advance deposits required, lease term including commencement and duration, other
requirements and special conditions. Lessees are usually given five days to conform to the offer
sheet. Make sure to clarify any points you are unsure of before signing the lease agreement. To
help you make your decision about the particular space offered to you, let me offer some tips
on site evaluation:

 Go to the actual site and do a body count/foot traffic on an hourly basis then add up
the total number of people who pass by within three to five feet of your actual site.
Multiply the total by two to five percent. The result will be the number of your
probable buyers.
 Ask around and investigate how much your would-be neighbors make on a daily basis.
 Try to get the total number of foot traffic going to the mall. You may get this
information from the leasing department or mall management. With this data, you can
 now make your own feasibility study, and help you decide whether the space will bring
in enough income for your business.

4. Space Acquisition

Once you have agreed to the conditions stated in the offer sheet and have officially acquired
the mall space, you are now ready to operate your business. To ensure that your business is
smooth sailing in the mall, it is important to keep a good relationship with mall management,
by doing the following:

 Be a good tenant. Always pay your rent on time.

 Be a good neighbor. Always make sure that you follow house rules and zoning
regulations. This includes keeping your area clean and not frying in a no-cooking zone.
 Be a team player. Join and support their marketing activities such as mall wide sales,
promos, etc.
 Be friendly. Call Leasing once in a while to say hello and find out if they have any
concerns regarding your lease or your business. Unless you are a big tenant, do not
throw your weight around like you own the mall. With the queue of prospective tenants
waiting for a slot, management might just replace your business with another one if
you are too much trouble.
 Be thankful. Remember, securing a space in a mall is not a benefit; it is a privilege.
Maintaining a good relationship with mall management will make it easier for you or
your other franchise businesses to secure mall space in their chain of malls. Word may
even spread to other mall chains of your good record as a tenant.

Here are some numbers you could call up if your interested in setting up your franchise
business in the malls.

Ayala Land Inc. Tenant Relations Manager

Commercial Centers Group Tel.: No. 633-78-51 local 129
Francisco Ma. D. Roxas Robinson's Land Inc.
Senior Division Manager for Operations Commercial Centers Division
Tel.: 752-79-89 Fax: 752-7998 Minda Carpio
Shangri-La Plaza Corp. Vice President for Leasing
Tenant Management Division Tel. No. 632-06-65
Hazel del Castillo Tel. No. 633-76-41 local 107