Franchising In Airports: A Guide To Success

Franchising in an airport can be a great opportunity for business people to take advantage of the high numbers of people in a specific space. Airports are busy places, with thousands of people passing through every day, and many of these people will be looking for something to eat or drink before their flight. This means that food and drink franchises can do particularly well in airports. However, it's important to note that franchise contracts may not be available until your airport has a good reputation, and you will need to do some research and meet certain criteria before signing a contract.

Renting out space in your airport

Franchises will make contracts with you to rent out space in your airport. There are three types of franchises: restaurants, cafes and shops. Once you sign a franchise contract, they will pay you rent for the space, and you will receive a portion of the sales. In order to accept a contract, you have to fulfil some criteria given in the contract itself (e.g. space of the room). Franchise contracts will not be available to you, or will have limited availability, until your airport has more of a reputation. In addition, you have to research franchises first.

Thousands of people walk through busy airports, which means that your franchise will have thousands of new impressions and potential customers all the time. Airport travellers are a hungry, captive audience. Some are in a hurry, looking for something fast and easy to eat as they rush to their gate. Others are bored, tired of waiting, and looking for something to occupy their time before takeoff. In both circumstances, fast, fresh and convenient snacks are a perfect solution.

The TSA recommends that travellers arrive at the airport two hours before departure to ensure plenty of time to go through security. This means that customers have plenty of time to eat and shop. 86% of travellers eat, drink and shop in airport terminals before flights. TSA liquids regulations (travellers cannot bring liquids in bottles larger than 3.5 ounces through security) have also made beverage sales skyrocket in airports.

Researching franchises

Understanding the Franchise System: It is crucial to understand the structure, operations, and requirements of the franchise system you are considering. This includes researching the franchise model, evaluating its profitability, scalability, and long-term sustainability. Understanding the franchise system will help you make an informed decision about whether it aligns with your goals and objectives.

Evaluating the Franchisor: Proper research allows you to assess the franchisor's track record, reputation, and financial stability. Look into the management team's backgrounds, industry expertise, and experience in supporting franchisees. The franchisor should provide training, support, and guidelines to ensure consistency across all franchise locations.

Assessing Market Opportunities: Researching the market helps you identify potential opportunities and assess the competition. Understand the broader industry landscape and identify growth areas. Are you entering a booming market, or is the industry facing challenges? By researching industry trends, you can align your franchise with market demands and identify potential threats.

Analyzing Competitor Success: Study the success stories of similar franchises. What strategies have worked for them, and what haven't? This can offer valuable insights into what works in the market and what doesn't. Assess the demand for the franchise's products or services in your target area, especially in an airport setting.

To gather information, you can call existing franchise owners (franchisees) and ask them questions. This will give you firsthand insights into the franchise concept you are considering. Additionally, understanding franchise management and working with franchise consultants can provide valuable guidance in your research process.

Signing a franchise contract

The franchise contract is an agreement between the franchiser and franchisee on how they will work together. It specifies the minimum information that must be included in the contract. This includes the duration of the franchise agreement, insurances, and the business premises. The contract also states what fees you have to pay to run the franchise. As franchisor and franchisee, you must comply with the rules laid down in the Franchise Act.

A franchise agreement is a legally-binding contract between the parties to a franchise relationship. In order to take ownership of a franchise as the franchisee, you sign a franchise agreement. A franchise agreement offers protection to both parties involved. It safeguards you as the franchisee while also preserving the integrity of the franchisor’s brand. When buying a franchise, you will be committing a significant financial investment. A signed agreement grants you rights that help protect your investment in your business.

Like any other contract negotiation, either party can propose whatever changes they want during the negotiation stage. Once the contract is signed, one party usually cannot make any amendments to a signed contract unless the terms of the contract allow one party to do so. To protect yourself and your money, please review any and all agreements with a business contracts attorney prior to signing. An attorney can sometimes also help you negotiate terms that will be more favourable to you.

Franchises will make contracts with you to rent out space in your airport. Franchise contracts will not be available to you, or will have limited availability, until your airport has more of a reputation. Once you sign a franchise contract, they will pay you rent for the space, and you will receive a portion of the sales. In order to accept a contract, you have to fulfil some criteria given in the contract itself (e.g. space of the room).

Non-traditional franchise opportunities

Franchising in an airport can be a great opportunity for business people to take advantage of the high number of people in a specific space. In order to franchise in an airport, you will need to research the airport and the franchise opportunities available. Once you have found a franchise that you are interested in, you will need to sign a contract. The contract will outline the criteria that you need to fulfil, such as the space available. Once the contract is signed, the franchise will pay you rent for the space and you will receive a portion of the sales.

One example of a non-traditional franchise opportunity in an airport is Pretzelmaker. Pretzelmaker is a great option for airports as it offers fast, fresh, and convenient snacks for travellers. Thousands of people walk through busy airports, meaning that a pretzel franchise will have thousands of new potential customers all the time. Airport travellers are a hungry, captive audience, and Pretzelmaker offers the perfect solution for those in a hurry, looking for something fast and easy to eat as they rush to their gate, as well as those who are bored and tired of waiting, looking for something to occupy their time before takeoff.

Advantages of an airport location

There are many advantages to opening a franchise in an airport. Firstly, thousands of people walk through busy airports every day, meaning your franchise will have thousands of new impressions and potential customers all the time. Travellers are a hungry, captive audience, and many are looking for something fast and easy to eat as they rush to their gate. Others are bored, tired of waiting, and looking for something to occupy their time before takeoff.

Another advantage of an airport location is that travellers are recommended to arrive at the airport two hours before departure to get through security, find their gate, and board their plane. This leaves customers with plenty of time to eat, drink, and shop before their flight. In fact, 86% of travellers eat, drink, and shop in airport terminals before their flight.

Furthermore, TSA liquids regulations (which state that travellers cannot bring liquids in bottles larger than 3.5 ounces through security) have made beverage sales skyrocket in airports. This presents a great opportunity for franchises selling drinks.

Finally, once you sign a franchise contract, the franchise will pay you rent for the space, and you will also receive a portion of the sales. However, it is important to note that franchise contracts may not be available until your airport has more of a reputation, and you will have to fulfil certain criteria given in the contract.

Frequently asked questions