When setting up a franchise, whether as a beginner or a veteran, it’s best to understand the importance of location. There are four primary resources you need to secure before you start the site selection process: the data, the franchise owner, the franchisor and the local real estate broker.

The three key persons need to collaborate in order to come up with a solid set of data that can lead you to the right franchise location. The franchise owner already has knowledge on the demographics of various neighborhoods while the franchisor has a full grasp of the brand, which the whole process will be based on. The local real estate’s role is to provide information on new developments, off-market deals and rent strategies. For additional safety measures, you might also want to hire an attorney to oversee the legalities of franchise procedures.

Here are seven things you need to look for (and ask yourself) once you begin to shortlist your options for a franchise location:


  • Is the area easy to find?
  • Is there convenient parking space?
  • Is it far from the city center?


  • Is there a regular flow of pedestrians?
  • Do the streets permit vehicles to have easy access to the site?
  • Is public transportation convenient in the area?
  • Is there too much noise around the site?


  • Will people, especially those unfamiliar with your product or service, easily see your area even from a distance?
  • Is the area saturated with other establishments to the point that it affects your visibility?
  • Is the store’s location inviting and visually appealing?


  • Is it a growing or regressing neighborhood?
  • What is the purchasing capability of people in the area?
  • What are the needs of the consumers? Is it likely that they will patronize your product or service?
  • Is it possible to shape the locals’ consumption behavior if you’re introducing a new product or service?

Local competition

  • Are there any similar businesses around the area?
  • How will you be able to set your business apart from competitors?
  • Is it only a matter of time before competitors start coming in?

Size and layout

  • Is it appropriate for the operational requirements of the business?
  • Does the structure provide ease in product and equipment transfer?
  • Will it provide comfortable space for seating and parking, as needed?

Condition and construction

  • Is remodeling required? How much will it cost?
  • Can the original materials be retained? If not, can it be easily sourced around the area?

Setting up a franchise is a long-term commitment, and it would cost you a lot if you have to redo your business all over again just because you’re at the wrong spot. In the end, it’s not just about finding the right location—it has to be a whole package: fits the budget, caters to consumers and ensures efficient operation.