How to Evaluate an Appropriate Franchise Location

To run a successful franchise business, investors need to find a location that is affordable, spacious enough and in many cases in an area where a large people go every day. Finding a great location can be a daunting process as many of the great sites have already been taken. Proper location should be focused on the requirements of your franchise business and your targeted customers. For this you need to know your business very well and then start searching for an appropriate location. Here is how you can evaluate a location for your franchise business.


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    Understand the Location Criteria: When you are looking for that perfect location, you need to first understand what type of locations will work for your franchise and which ones won’t. Ask the franchisor to provide you with information on the type of location you should be looking for. And start your search on the basis of what your franchisor has asked for.[[Image:Succeed-in-Network-Marketing-Step-4-Version-2.
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    Get a copy of the demographic report within five-mile radius of the location where you want to start your business. This report contains information about the neighborhood which includes population, number of households, and estimated population by race, age, and income level.
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    Find out if there are Traffic generators: The location for your business should be such that it brings you customers. For instance, for a food franchise, some common traffic generators include malls, market places, office complexes, schools, hospitals and so on.
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    Look for a location where the flow of traffic of your targeted audience, both by car and on foot is good. There must be ample parking space and enough area for people to walk around comfortably. The area should be well connected with roads and must have good transportation facilities. This will benefit your business a lot.
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    Check the proximity of your competitors in the area. You can get the information from the Yellow Pages related to how your competitors are doing in terms of sales. Also talk to customers, employees, and other owners of the business in the area.
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    Find out about Security: Your business must be located in an area that is safe for your customers and your staff. If your business is in an area known for its high crime, customers will not come.
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    Step Visibility: Your targeted audience must be able to see you and know what you are selling. Visibility is important to ensure success in any franchise business.
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    Once you are satisfied with a location, get it approved from the franchisor. Go over the entire location documents with an attorney, accountant, or business adviser to help you make a realistic and sound decision. Once approved make the final payment and get set to start your own business.


  • Get input from current franchisees for location to get a clear picture.
  • Follow the guidelines provided by the franchisor on what type of location would be perfect for the franchise business.


  • Consult an attorney before finalizing a deal.
  • Choose brokers who have a good reputation in the market.

Things You'll Need

  • Requirements of franchise location
  • Demographic report
  • Money
  • Research qualities
  • Attorney

Article Info

Categories: Buying & Forming a Business