Why Location Can Make or Break Your Franchise Success
Jun 18, 2025 1:32 pm
Hi there!
Let's talk about location. Your potential franchise location?
So, you've found the perfect franchise concept, but here's the hard truth:
Even the strongest brand can fail in the wrong location. Understanding location dynamics could save you from a costly mistake.
The 3-Mile Rule
Most franchise customers come from within around 3 miles of your location. Drive around that radius at different times - morning rush, lunch, evening, weekends. What do you see? Heavy traffic doesn't always mean sales if no one can easily park or access your business.
Know Your Demographics
That trendy coffee franchise you're thinking about opening might seem perfect, but if the median household income within three miles is $35,000 and the average customer spends $8 per visit, the numbers won't work.
That's why you need to match your franchise concept to the actual people who live and work nearby.
Competition Reality Check
Don't just count direct competitors. A pizza franchise fails when surrounded by five other pizza places, but it can also struggle next to a popular food court that already satisfies the local lunch crowd.
Wait!
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The Landlord Test
Great franchisors will walk away from bad locations, even if you're excited about them. That's because they have the market research tools needed to make a smart, profitable decision (usually).
But, if your franchisor is pushing you toward a questionable spot or seems indifferent about location requirements, that's a red flag about their commitment to your success.
Bottom Line: visit your potential location at least 5 different times on different days before committing. See the traffic yourself.
That's all for this week.
The Franchise King®
Joel Libava
216-831-2610
“Books are the perfect entertainment: no commercials, no batteries, hours of enjoyment for each dollar spent. What I wonder is why everybody doesn't carry a book around for those inevitable dead spots in life.”
― Stephen King