When starting a small business opportunity, location is key. In franchising, it is no less important to pick a prime spot.

Choosing the right location for a franchise is important to building on the strong brand name, marketing and business plans the franshisor already has in place, Inc. magazine reports.

The first step in choosing an effective and successful location is to understand what type of business the franchise is. Investors must consider who the target audience is and how the franchise has been branded to attract a certain segment of customers. Speaking with fellow franchisees can help potential owners avoid sites that have already proven less profitable, the magazine says.

If the franchise is a retail establishment - and more than half of them are - investors should study traffic patterns, considering parking arrangements and the potential for foot traffic, Inc. writes. Additionally, franchisees should research their neighbors to determine who generates business and who may be a competitor.

Often, franchisors will have requirements when it comes to choosing a location - or may even choose it themselves. According to Franchise Prospector, McDonald’s conducts all of its own site evaluation and location selection before offering franchises to trained candidates.

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