How To Find The Perfect Franchise Location

How To Find The Perfect Franchise Location

When it comes to business success, the right location is key. The same principal applies to the success of a franchise. However, different franchisors have different stipulations when it comes to the locations of their franchises, which can make finding a perfect site and negotiating the sale tremendously difficult.

This tedious project can be made a little easier with the help of these four considerations:

1. Pick Your Franchise

The first step to finding a well-trafficked location is to determine what type of franchise you are ready to open. A location can vary greatly based on what type of business you are opening. It’s important to research the different franchises available, which can be done on sites such as, in order to narrow down your location specifics and identify the best environment for the franchise’s success.

2. Experienced Help and Support

Once you have decided upon your franchise and have looked over the Franchise Disclosure Documents, the franchise agreement should have included the rights to certain areas. However, those available geographic regions could contain up to hundreds if not thousands of available locations, from food courts to strip malls to airports, etc. In order to find the best area, you need the help of an experienced franchisor.

Before signing any contracts and setting anything into stone, one of the first questions you should be asking the franchisor is how do they determine what type of location is best for your franchise’s success and who will be supporting you throughout this process. Your next question should deal with how much say you get in your franchise’s location. If the franchisor isn’t willing to work with your location preferences, this franchise might not be the best fit for you.

3. Analyze the Area

If you and your franchisor have come to an agreement on location, it’s time to start analyzing various areas that potentially could house your franchise. Sometimes locations that look great on paper are actually poor locations when traffic patterns are analyzed.  It’s important to take city demographics, future building plans, and surrounding businesses into account. A qualified real estate broker can help provide this information.

4. Lease Details

Be as involved as possible in the lease details, including the rent negotiation process. Additionally, consider having legal counsel review your lease in order to protect your interests and assets. Some franchisors are not as aggressive when it comes to the lease details. Since it’s your money on the line—even though you are working with the franchisor—it’s important you get what you want in the lease contract.

Additionally, there can be hidden fees certain locations do not disclose properly. While franchisors will do their best to allocate these hidden details, it’s important you do your due diligence. Legal representation can help ensure that the contract between you, the building, and the franchisor is legitimate and that there are no hidden concessions you are unaware of.

The best way to find a perfect location is to ensure your interests are protected while working with a supportive franchisor and experienced real estate broker.