Should You Trust Your Franchisor To Pick A Good Franchise Location?

franchise location best choices

While it’s true that securing a great franchise location can be critical to your success, it’s only one of many things that can contribute to it…to your ultimate success as a franchise owner.

On Franchise Locations

Most of the people who work with me, who use my franchise ownership advisory services, bring up “location” pretty early on in our discussions.

That’s because they’re really focused on getting a good location for their yet-to-be-chosen franchise business.

While the importance of choosing and ultimately having a good location can and sometimes does dictate the success of a franchise business, it’s a massive waste of time for my clients (and you) to allow location-related thoughts to occupy a lot of your time as you try to find that “perfect” franchise opportunity.

In other words, don’t obsess, worry, or even think about location until you decide on a specific franchise and are towards the end of your research process.

Capeesh? (Hat-tip to my in-laws, who are Italian)

Should I Trust The Franchisor To Pick A Good Franchise Location?

In a word, yes! Of course you should.

After all, why wouldn’t you trust the franchisor to help you secure a good great location for your franchise business? Don’t you think they want you to succeed?

Stop with the paranoia. Don’t listen to people that have “heard” of franchisors that have purposely picked bad locations for their franchisees.

Here’s why it would behoove you to ignore crappola like that:

The more you make, the more the franchisor makes.

If you become the owner of a franchise business, you’ll be sending in a monthly royalty check to the franchisor. It could be 4, 5, 6, even 10% of gross sales.

For instance, if your franchise business does $400,000 in annual sales, and the royalty is 6%, the franchisor gets $24,000 from you. And, they get 6% from every other franchisee, too. Do the math. The franchisor wants you to succeed. They want you to send them big, fat, checks-every month, for the life of your franchise agreement, which is typically 10 years.

Again, they want your location to be a winning one. And, if they want to be a successful franchisor, they need your franchise location to be a successful one. They need you to be successful.

Choose, Research, And Purchase

Do it in order. Don’t focus on location until the end.

  • Make sure you’re a fit for franchising
  • Choose a few opportunities to explore
  • Explore them. Learn about them
  • Do great franchise research
  • Have a franchise attorney look things over for you
  • Write a formal business plan
  • Apply for a franchise loan
  • Make your decision
  • Find a great location
  • Open for business
  • Let me know how things go


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The Franchise King® | Joel Libava ♛

I'm The Franchise King®, And I Help People Become Their Own Boss Through Franchise Ownership. Author/Advisor