Franchising
Tips, advice for selecting the right franchise location
The oldest, and most known, saying when it comes to real estate is location, location, location. It holds true when it comes to restaurant franchising success.
March 5, 2026 by Judy Mottl — Editor, RetailCustomerExperience.com & DigitalSignageToday.com
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ClaudeThe oldest, and most known, saying when it comes to real estate is location, location, location. It holds true when it comes to restaurant franchising success.
Traffic, both vehicle and foot, is crucial to a restaurant franchise's success. Without drivers pulling in and those walking into a location, there's simply no sales to be had.
That's why location is of top importance when a restaurant brand expands with a franchise and why it's a key to a franchisee's success.
But traffic is just one site selection factor. There are several others, as well as common site selection pitfalls that come into play.
One big pitfall is when a franchisee falls in love with a location without any understanding of the aspects supporting the proposed space, according to Justin Riat, chief growth officer at Parlor Doughnuts.
"Franchise partners sometimes prioritize visibility, speed to open, minimal buildout costs, existing infrastructure, proximity to their own home over fundamentals like rent as a percent of sales projections, access, parking, traffic counts, demos and long-term trade area strength. Even the best brands can't outperform a bad location," Riat said in an email interview.
Panel of site selection experts
Riat is one of four experts participating in a panel talk, sponsored by SiteZeus, entitled, "Site Selection Secrets: Unlocking the Next Goldmine Location," during the upcoming Restaurant Franchising & Innovation Summit taking place March 16-18, 2026, in San Diego, California
Fellow panelists include Chris Bremer, chief development officer at Smoothie King, Basil Kazepis, vice president of real estate and construction at Little Caesars Pizza and Shak Turner, director of franchise development at Wienerschnitzel.
At the annual event, hosted by Connect Media, top executives will share how they're scaling smarter and growing faster through bold innovation. Attendees will gain the insights, inspiration and connections to take a brand to the next level.
Location, location, location
The right location when selecting a franchise site can make or break the new franchise unit. During the panel talk topics will range beyond simple demographics to cutting-edge tools and methodologies, including geospatial analytics, traffic pattern analysis, competitive mapping and psychographic profiling.
The top misstep franchisees and brands make in site selection, according to Turner, is being focused on cost.
"[It's] choosing a cheap site over quality site criteria, lower rent and sacrificing A sites, which sacrifices traffic and visibility," she said in an email interview. Relatedly oftentimes franchisees and brands are "not investing in data to qualify a site."
The art of negotiation
Along with choosing the best site, a key aspect to franchise expansion success is successful negotiation in attaining the wanted location.
Riat describes a successful negotiation as a "team effort," and said it's an area that many are not well versed.
"In addition to the franchise partner, it's important to have the franchisor involved, along with a qualified commercial broker who understands restaurant deals," he said. "An Attorney should also be involved at some level... and at a minimum review everything before anything is fully executed."
Turner recommends involving the real estate broker in the negotiation effort as well as a lawyer for several reasons: to review the lease and terms to ensure they coincide with the franchise agreement, to keep rent increases modest and provide a clear outline of landlord responsibilities and tenant responsibilities so there are no surprises down the road.
Upcoming Related Connect Media Events
Restaurant Marketing Workshop will equip you with the latest strategies, tactics, and insights to drive brand awareness, customer engagement and revenue growth.
June 2-3, 2026 | Boston
Fast Casual Executive Summit
October 4-6, 2026 | Arlington, TX
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