August 29, 2024 Copyright ©️ 2024 by goldkeen International Patent & Trademark Joint Office

 

“Is franchising still profitable right now?”
“Is it all just a cash grab these days?”

These are some of the hot questions my friends have been asking lately.

I can’t say for sure whether there’s money to be made,
but franchising isn’t just about bubble tea, egg waffles, or laundromats...
What really matters is how standardized and well-structured the headquarters’ systems are.

One thing is certain—you need revenue.
Based on my own experience in site selection, here’s some advice I can offer.

Regardless of the industry, when choosing a commercial district or a storefront location,
here are a few key directions to consider:

Visible Characteristics of a Commercial District

• Major Construction Projects:
  If the area is undergoing large-scale construction, such as traffic disruptions or urban redevelopment, it usually means revenue will suffer.
  Unless you have deep pockets, jumping in early isn’t always a wise move.
• Road Width:
  A road that’s too wide essentially limits your business to just one side of the street.
• Peak Business Hours:
  Business zones, industrial areas, cultural parks, and school districts all have different traffic patterns.
  You need to think carefully—whose money are you trying to earn?
• Indicators of Established Local Demand:
  If your franchise isn’t built around providing convenience-based services, check for nearby businesses such as breakfast shops, clinics, eateries, or other franchise stores—these can be strong indicators of a viable market.

Potential Factors: Long-Term Operation and Property Compliance

• Urban Renewal:
  Urban redevelopment isn't necessarily a red flag—many landlords talk about it for years without action.
  The key is knowing what stage the project is currently in.
• Land Use Zoning:
  Is the zoning of the property you’re planning to rent approved for commercial use?
• Building Safety:
  Beware of so-called “sea-sand buildings” (buildings with corroded rebar due to high chloride content).
  You can check the list of regulated buildings with high chloride levels through the local Construction Management Office.
• Legal Usage of the Building:
  If a property is currently zoned for residential use, can it be converted for a restaurant?
  If you’re renting the second floor or higher, can you open a barbecue restaurant there?
  You may need to apply for a change in usage permit before operating a business.

 

Franchises aren’t startups—they come with existing frameworks and proven business models.
By building on these foundations, you can evaluate cautiously, act boldly, and raise your revenue baseline.

This article was shared with permission by franchise expansion strategist Sammy Chen.
For consulting services, you can find him on LinkedIn.

 

If you've read this far, you're just one step away from launching your franchise.
So, what is that missing X?

Want to know if your trademark can be successfully registered?
Need help with your franchise agreement?

👉 Click the button below to consult with us now
or search @goldkeen on LINE, or click the link:
https://line.me/R/ti/p/@goldkeen