How to Choose the Right Location for Your Franchise

You know what they say about real estate, right? It’s all location, location, location. That’s something you’ll hear again and again, and it’s something you’ll hear even more about starting a business as a prospective franchisee.

No doubt, your future success as a franchisee depends in no small part on your ability to select an appropriate locations for the franchise that you own. So what goes into choosing that perfect location? That’s what we’ll be exploring below.

Start with the Business

Ultimately, it’s not the location that’s really important; it’s the customers. They’re who you’re after. Therefore, you’ll want to understand the business that you’re getting into. What does the average customer for that business look like? Are they the kind of customer that will seek your business out, or are they the kind of customer that will come into your business if it happens to be there?


That’s not all you want to consider. What kind of income does your potential customer have to have in order to shop at your business? Is there a certain demographic that your business will appeal to specifically?

Understanding your potential customers is the most important thing. The ideal location is going to be a place where those customers live, and where there are few barriers to them walking through your front door.

Talk to Other Franchisees

Unless the franchise you’re looking to open is a new concept, there will already be established franchisees who’ve already had success with the concept. Make the effort to seek these franchisees out and to ask for their advice on location.


Here, you won’t merely want to focus on a geographical location. You’ll also want to ask about the kind of building that will be needed, as well as the kind of environment that works best. In your life, you’ve probably encountered a fast-food establishment that’s simply too hard to get to because of the way that the roads are constructed around it. You’ll want to learn from other franchisees whether or not these kinds of things should be a large or a small concern for you.

Talk to the Franchisor

The beauty of becoming a franchisee is that the franchisor has already done a lot of the work for you. With the grand view of things that the franchisor has, you’ll be able to learn vitally important information about what makes a successful location. In addition, the franchisor, in almost every case, will be highly motivated to help you indentify the ideal location, as this will have a direct affect on the franchisor’s bottom line.

The Nitty-Gritty, of Course

By doing the above, you should have a very good idea about what kinds of places are going to be great for your franchise location. However, you’ll have to pay attention to the details, too. Is there enough parking? Are there any other stores in the same area that will pull business towards your location? What about stores that might pull business away?

As you can see, there’s a lot to consider. So, take your time, and never be afraid to contact a franchise consultant if you feel out of your depth. Once you pick a spot, that’s it. So, you might as well make sure it’s a good one.