Finding complimentary businesses and locating next door is an obviously smart move for a budding franchisee. For example, if you are starting a coffee franchise, locating next to an Ace Hardware (caffeine hungry contractors) or CVS (heavy foot traffic) can double your sales over a generic strip mall.
In this instance, an Advance Realty locates next to a Daily Grind coffee house in an old firehouse.
In case you are curious….Daily Grind: $300K estimated initial investment, 5% royalty fee, 1% advertising fee, $30K franchise fee…about average
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Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
I think Home Depot stores should have little restaurants, coffee shops or fast food. They have a tremendous traffic flow and many are in a hurry and hungry.
Is rent impacted by your neighbor? If a Starbucks will be next door, you can benefit from the foot-traffic. Will the landlord increase the rent in that case?