Even with the advantage of access to know-how and the support of experienced people, launching a franchise project is no mean feat. One of the main hurdles to overcome is finding the ideal location, which will determine the success of your outlet. Some opt for good visibility and customer flow by setting up in a city center, others choose shopping malls - but what are the advantages and disadvantages of each option?
The benefits of opening a franchise in a shopping center
According to the Conseil National des Centres Commerciaux (CNCC), France has 746 shopping centers representing 15.8 million square meters and welcoming 3 million visitors a year.
The first advantage of locating in a shopping center is the almost constant flow of customers and the natural emulation of competitors.
What's more, commercial premises in shopping centers are generally in better condition than their counterparts on city streets. The maintenance specifications and commercial lease contracts for these complexes are very strict in this respect, requiring tenants to keep their stores clean.
However, shopping centers can be an advantage for franchises if the franchisor has prior experience in this type of establishment and can demonstrate its relevance in such a context.
The disadvantages of locating in a shopping mall
First of all, rent and service charges are generally high, depending on the number of shoppers and the size of the center. As a rough guide, you can expect rent and service charge differences of 20% or more compared with similar locations outside the shopping center.
On the other hand, renting in a shopping center can be more difficult than in the city, due to the numerous criteria set by the owner, who strives to ensure the coherence of the offers presented by the multiple retailers located there.
So make sure you don't settle for the first location you see when you set up shop in a mall. As in cities, these places also have their own classification system. So choose premises close to the main attractions, such as large food stores, for optimum success.
Finally, don't forget that it's not you who sets the opening hours of a shopping center, but the owner. In general, shopping centers operate on different schedules: 9.00am-8.00pm most days, which can add an extra load to your energy levels and family life!
