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Finding a Good Franchise Location

Sep 23, 2021

Nowadays, market competitions have radically increased as everyone fights for survival. Numerous entrepreneurs have found a better way to profit by indulging in franchise businesses to dominate other competitors.

However, many people still lack the knowledge for a franchise business to succeed, especially regarding location. And since location is a determining factor for revenue output, it should be an essential detail for all franchise businesses.

Understanding Your Franchise Concept When Choosing a Location

One of the first things you have to figure out before deciding where to place your business is its concept. This will allow your business to target what customers need in a particular location.

There are two basic types of concepts for a franchise location. They include:

● Traditional concept

A traditional concept is a free-standing unit in which your franchisor only supplies and manufactures a particular product. It allows you to gain control over your product since it requires presale and post-sale service. Generally, you will be able to operate independently while using your methods.

Additionally, traditional locations contain their own reserved parking lots.

● Non-traditional concept

Typically, these locations are smaller than the traditional ones. They usually operate in malls, airports, offices, college campuses, hospitals, food courts, and more.

Franchisees in non-traditional locations mainly offer various products, which allow customers to have multiple choices.

Once you understand the franchise concept, such as your target demographic and when, why, and how they would need your product and services, it would be easier to decide on the best location for the business.

Tips on How to Find a Good Franchise Location

The main goal for any entrepreneur is to ensure their business succeeds and gain advantages over their competitors. This is why many people opt for franchise businesses.

However, a franchise business needs to be established in the best location for it to succeed. This allows potential customers to spot your store, so your company becomes more profitable. Additionally, one can focus and target the people’s needs in the chosen location.

In case you find it difficult to locate a good franchise location, then consider the following tips:

● Ask for help

In most cases, franchisors include searches of a particular geographic region that matches your business description. They generally provide you with some informative knowledge about your potential franchise unit. Therefore, your choices will be based on a type of location that perfectly fits your franchise business.

However, before making a decision, continually evaluate the location’s type, size, and state.

● Assess the demographics of your customers

For your business to succeed, you must offer services that customers require. Thus, programs like SitesUSA and SitesZeus provide franchisors with demographic reports of a particular area. The information usually depends on the cost of living, quality of life, referral sources, future livability, and population intensity.

Correct demographics will not only entice potential customers but also provide details about nearby competitors.

● Understand the lease negotiations

You can include legal counsel in your lease negotiations since it can create a win-win situation for both parties. The legal counsel can also help you understand all the lease details and provide you with concession knowledge.

Moreover, you should always be involved directly during any agreement procedures to ensure that all information is correctly outlined. You don’t want to agree to something that will later affect your business. For example, do not agree to contracts that demand you to pay rent based on your venue since the owner can increase prices when your business is flourishing.

● Research for future viability

Any future developments in the area you plan to establish your company could affect your business. For instance, if the location is viable for a coffee shop, there is a huge possibility that someone will attempt to build another coffee shop. This could later invite more competitors who may cause your profit to decrease drastically.

Therefore, always make sure that the location is viable for you now and in the future. You can do this by making friends with local contractors and the staff in the municipality’s office to gain more information about the location of your preferences.

● Choose a highly populated location.

It is most likely for a business to prosper in highly populated areas. However, one must check for foot traffic and vehicle traffic locations, as a potential consumer can quickly spot your store. For example, places like malls, markets, busy streets, etc., can lure customers into dropping by your business due to foot traffic.

Additionally, one needs to dig deep into the location’s population records and estimated future population growth.


Primarily, franchisors can provide you with guidance when it comes to the selection of franchise locations. Therefore, there is no reason to feel shy. Simply ask for help so you can choose the best area for your business foundation.

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Whether you’re just starting out or already know the right brand for you – you’ve come to the right place. Fransmart helps franchisees use the power of compounded returns to own and operate multiple franchise locations throughout your desired market to grow franchise wealth.