Franchise Glossary
Site Selection
The process of identifying, evaluating, and securing an appropriate physical location for a franchise unit.
Site selection is a critical factor in the success of brick-and-mortar franchises. Many franchisors provide site selection assistance, including demographic analysis, traffic studies, and co-tenancy requirements. The franchisor typically must approve the selected site before a lease is signed. Factors evaluated often include population density, household income, visibility, accessibility, parking, competition proximity, and lease terms. Poor site selection is one of the most common reasons franchise units underperform.
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