How to choose the perfect location for your franchise 

How do you choose the perfect location for your franchise? In this article, looks at five key factors you should consider.

How to choose the perfect franchise location

How do you choose the perfect location for your franchise? In this article, looks at five key factors you should consider.

Once you’ve decided to go down the franchising route, deciding where to set up shop is one of the most important decisions you’ll need to make next.

Picking a location goes beyond just geography – it’s a strategic choice that will impact your market reach and visibility. The ideal location can propel any business to success, but an unsuitable one could mean you face an uphill struggle. 

So how can you pick a site that both meets your operational requirements and also resonates with your target audience? In this article, takes a look at some of the factors you should consider when picking the perfect franchise location.

Target market & demographics

The first thing to take into consideration is the audience you want your franchise to reach. Is your ideal customer an urban millennial, a young parent, or a retired homeowner? Are you targeting people in high-income areas, or is your franchise offering a more affordable service? Aligning your target market with the population demographics of your chosen location is crucial, and could significantly impact your sales and profitability.


Once you’ve got an idea of the sort of areas you want to target, you’ll need to consider some of the practical issues – the most important being cost. Rent, utilities, renovation costs and other associated expenses need to taken into consideration, and weighed against the potential revenue your franchise can generate.

The decision to go for a prime, high-cost location versus a more affordable, lower-footfall one will hinge on a cost-benefit analysis. Careful financial planning will ensure you stay within your budget while setting yourself up for success down the road.


Make sure you’ve considered public transport links, parking availability and the overall visibility of your chosen site. Picking a site near a major road, busy shopping district or pedestrian zone with significantly boost your chances of attracting new customers. A site which is wheelchair-accessible will also mean you don’t prevent any potential customers from visiting your site.


It’s not just about your franchise – you’ll also need to consider how close your nearest competitor is, and whether they’re offering any services which conflict with yours. How can you give yourself the best chance to catch the widest audience possible, and avoid too much overlap?

You might also want to consider competition from your own franchisor, especially if you’re launching a new location for an established, international brand. Understanding your rights around exclusivity and encroachment will mean you avoid any nasty surprises if another location opens just down the street.

Franchisor requirements

Some franchises will have specifications surrounding sites and locations which you will need to adhere to. Make sure your site is suited to all of you and your franchisor’s operational requirements, and that they’ve given their approval to it. 

Stuart Wood
Stuart Wood