Posted by: Roni Deutch Staff | September 2, 2008

8 Tips for Finding the Perfect Location for Your Franchise Business

Once you have made the momentous decision to invest in a franchise business, it is time to make the next big decision – where to locate your franchise store. Finding the perfect location has many factors and may be more difficult than you would imagine. Nevertheless, by being prepared for the search, the whole process will seem faster and easier. To help our readers, we have compiled the following list of important tips to consider when choosing a location for your franchise business.

1. Have a Plan

Before beginning your search for the perfect location, make a list of what you do and do not want. Make sure to take into account not only what you want personally, but any requirements the franchisor may have. It is also a good idea to make a budget plan early so you know exactly how much you can afford to pay in rent.

2. Visibility

One of the most important location factors for a franchise is visibility. Even if you choose a great building on a popular street, if your sign is too small or your business is hidden then you may lose potential customers. Make sure your location is either highly visible from a main street, or provides the option for you to have a large, prominent sign for your store.

3. Target Market

Having your target consumers nearby will always be helpful to your business. For example, if your franchise sells school supplies, being near a school or popular residential area will be very beneficial. Try to determine your target market in advance by researching what who typical are, and be sure to find out what information your franchisor can provide.

4. Drive by Traffic

Obviously having your store on a well-traveled street will help your business. Make sure to ask your potential landlord for data on the amount of drive by and foot traffic. Also take notice of how fast the traffic is actually moving. If the speed limit is high and there are no traffic lights very close, your potential customers may drive right by your store.

5. Employees

While looking at locations always ask yourself, “can employees access the location easily?” If candidates will have to make a large commute to work then you may miss out on highly qualified employees. Another important factor to consider is whether or not there is a large and dependable employee market nearby.

6. Franchisor Requirements

Do not forget to look at your franchisor’s requirements, restrictions, and recommendations before going to look at potential locations for your store. Franchisors want you to succeed and will usually offer you quality advice on what sort of location works well for your business. They may also have certain size requirements or legal restrictions that you have to follow.

7. Competition Range

Competition in a sensitive economy is a very important factor. If you are very confident in your franchise brand and business plan, you may want to risk being near a little competition. On the other hand, you may want to be in an area that has no other businesses offering similar services.
8. Get Help

When you go out looking for a potential site location, make sure to have a commercial real estate agent come with you. They will be able to help you identify prime locations, and will even help with lease negotiations. It might also be a good idea to have a family member or close friend come with you for personal support.



  1. Another thing you should mention is demographic. Consider your ideal client profile – both their demographic and psychographic characteristics. One you understand your ideal client, you can target specific sociodemographic regions that fit the mold. This will tell you where to place your franchise. Other good solution for your question here…

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