A non-traditional franchise is a franchise business located in areas where a large concentration of people are likely to convene or pass by. This recent trend in the franchise industry has become an effective way to target convenience-driven consumers.
Some of the many reasons to invest in one include:
- Reduced franchising fees
- Lower startup costs
- Smaller real-estate fees
- Fewer employees
- A distinct customer base
If you’re looking to invest in a franchise business that provides significant growth opportunities, a non-traditional franchise is a great place to start. Here’s what you need to know and what to take note of before taking the plunge.
Most non-traditional franchises are dedicated to food products. The food industry offers endless and varied possibilities for franchising. You can put your money in almost any food product, from ice cream investments to hotdogs and smoothies investments. There’s always a reliable market for food, so you’re guaranteed a steady income and return on investment.
Determining your personal goals, strengths, and passions will help narrow down your choices and select the right one for you. Seek out franchises with a strong support system and a sincere investment in your potential. You’ll get more out of a company that values you and your growth as a franchisee.
Non-traditional franchises attract a diverse and unique customer base depending on your choice of location, from students in canteens to tourists in airports.
But simply because your non-traditional franchise reaches a wide variety of people doesn’t mean you shouldn’t have a target demographic. Identifying your ideal customer will help you understand their needs better. A customer is more likely to patronise your franchise if they know your products can adequately satisfy their wants and needs. For example, it would make sense to open a pizza franchise in an area populated by students. Pizza is a popular snack among students who need an easy and portable meal.
The biggest draw for non-traditional franchises is the flexibility you get when it comes to choosing its location. Wherever there’s high foot traffic, you can guarantee a non-traditional franchise will be there. These spots include airports, sporting events, concerts, hospitals, stadiums, government offices, highway rest stops, and more.
An ideal location for your franchise would be both highly visible and accessible. You should factor in your target demographic when choosing your location. They should frequent your preferred spots and their habits should align with your franchise. For example, as previously mentioned, a pizza franchise would fit in a school cafeteria with plenty of college students. However, you wouldn’t get as enthusiastic of a response if you were to open one near a gym frequented by health-conscious individuals. In that case, perhaps a green smoothie bar would be more appropriate.
These are the main concerns that should factor into your plans for the business. As with any business, a ton of market research and preparation is needed to ensure its success. You can even speak with past franchisors to see if the venture is right for you. At the end of the day, investing in your own non-traditional franchise will guarantee rewarding experiences and a wealth of opportunity for you.