Starting a franchise is an attractive option for many entrepreneurs since they can replicate a proven business model. However, one of the first steps is to find a suitable commercial space and adapt it to the franchise's specifications. This includes MEP installations: their cost can be greatly reduced with the right commercial space, but they can also become very expensive with a bad choice.
To choose the right location for your franchise, you need to understand your energy and water needs. For example, you can expect high gas consumption if you are considering a dry cleaning franchise and high water consumption for a car wash franchise. If your utility service connections do not have sufficient capacity, you will need to upgrade them to function properly.
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Here we will provide some recommendations for reducing the cost of MEP systems when starting a franchise in a new location.
1) Understand the franchise’s energy and water needs
Depending on the industry sector, franchises can have very different needs. Their energy and water consumption depends on the equipment used and the processes carried out, which determines the design requirements of franchised MEP systems.
For example, you can expect to use a lot of water at a car wash or laundromat franchise. On the other hand, a coworking franchise will have modest water usage, but electricity consumption may be high due to lighting and HVAC needs. You should also provide enough outlets for laptops and other plug loads.
A generic approach is not possible in franchise retrofit projects: it is necessary to consider the energy and water needs of each business model and use this as a starting point for designing the MEP.
2) Review franchise manuals and specifications with experienced MEP engineers
Franchises have extensive manuals and specifications, which may even include sample construction drawings for commercial spaces. However, understanding how these requirements translate into an MEP design can be challenging, especially if this is your first experience with building codes and building permits.
To ensure you don't miss important requirements, the best recommendation is to review your franchise manuals with experienced MEP engineers. They will know exactly which design features will meet the specifications provided while complying with local building codes.
3) Get a professional assessment of the commercial space before signing a lease
Commercial spaces are often compared based on square footage, location, and layout. However, there may be underlying issues that can only be detected with adequate technical knowledge. For this reason, you should always obtain a professional appraisal before purchasing a property or signing a lease.
MEP engineers can help you identify issues that are not obvious at first but have the potential to become major problems in the long term. For example, there may be damaged components hidden by a dropped ceiling or drywall. These problems can greatly increase the cost of a franchise installation or can arise later and cause equipment breakdowns.
4) Choosing your commercial space: new or already occupied?
When using a new commercial space for a franchise, the main advantage is being able to start from scratch. You can design the retrofit project exactly as needed for your business operations and don't have to deal with problems left behind by previous tenants. However, considering MEP requirements is still important: existing service connections must have sufficient capacity for your franchise.
Previously occupied space can reduce the cost of a franchise retrofit when you can repurpose some of the existing premises. However, the opposite also applies: you could end up spending more with a wrong choice. The last thing you want is to completely remove existing MEP systems and install new ones from scratch. In this case, using a new commercial space is the best option, as it does not involve dismantling and demolition costs.
