Monday, August 17, 2015

Building Your First Franchise? Don't Miss Six Steps To Success

Popeyes retail store in sunny Las Vegas
Popeyes retail pad, Las Vegas, Nevada
CSHQA works with local, regional and national chains throughout the US.  Our experience with franchises ranges from kiosks and mall tenant improvements to stand-alone pad stores.  In our experience, first-time owners are the most likely to run into unplanned obstacles during design, permitting or construction.  If you are a first-timer - or not - these six tips will make you a pro.

Hire your architect early.  Very early.
You’ve selected a franchise brand and your realtor has found three potential sites.  How do you choose?  Aside from location, location, location and price, you need some critical information before you sign on the dotted line.

That’s when you engage an architect who can provide entitlement services including:
§  Site Investigation Report – Zoning, utilities, permitted uses.  Know your restrictions going in.
§  Property Condition Assessment.  What is the state of the property (building or lot)?  Will you have to fix someone else’s problem?
§  Site Survey and Conceptual Layout – Will your program fit?

Architects are experienced at uncovering the details, organizing a vast array of information, then solving potential challenges.  Before we even think about design, our role is to plan and advise for a successful outcome.
 
Understand the ‘Rules.’
You know the Franchise has a complete set of branding and operational standards and as your architect, we’ll follow them.  What about the community and the landlord?  Will you be subject to design review?  What are the local codes regarding signage?  What other codes will impact your project?  Does the landlord have his own set of restrictions? Your architect is instrumental in determining the impacts.  This step should also proceed your final purchase or lease decision.

Don’t wait until bidding to talk with contractors.
Contractors are your best source for current information on costs of materials and, in today’s building environment, labor.  The recession cost our nation tens of thousands of experienced trades professionals.  This is the cost to closely watch.  Contractors can also advise on lead times for major equipment, ideas for materials staging and cost-saving construction options.

Plan enough time…for everything.
Be realistic.  Plan time for ordering long-lead items, solving an unexpected problem, resolving delays caused by weather or labor shortage, and permitting.  Some things cannot be overlapped to make up time.  Plan for contingencies.

Write a comprehensive budget with room for surprises.
Franchise purchase + professional services + construction services + local fees + materials + supplies + contingency.  Plan to use your contingency.  If you don’t, it’s a bonus.

Trust your team and have patience.
Every site, every project, every store is unique.  Prepare good plans, plan for contingencies, remain proactive and enjoy the process. 



James G. Murray, AIA, LEED GA is a principal with CSHQA, and specializes in retail design.  His expertise includes national chains, downtown urban renovations, mall tenant improvements, pad sites, anchor stores, multi-tenant plazas and multi-use residential and hospitality developments.  Recent clients include Dunkin’ Brands, T-Mobile, Tropical Smoothie, Starbucks, 7-11, Red Robin, Rite Aid, Safeway, Albertsons, Walgreens and JC Penny. 

Jim will be presenting these and other insights at the National Franchise Institute two-day training, September 21 and 22, in Glendale, Colorado.  http://www.nationalfranchiseinstitute.com/events/