Article - Prime Location: Location and appearance of a franchise office are essential parts of franchise advertising. Read this article

Location Selection
One of the most important decisions franchisees make is where to locate their offices. The location selection process includes research, analysis, approval and negotiation. Although a franchisee’s sales ability is the first determinant of success, a suitable location improves the odds for success.

Research Facility
Personnel begin the location selection process by researching the franchisee’s individual situation
including location preferences, specialty preferences and budgeting limitations. The franchise application and the franchise committee meeting with prospective franchisees are the primary sources of information. This information is used to identify one or more prospective locations.

Analysis
A cost-benefit, or “doability,” analysis is compiled by the facility center for each prospective location. Facility center personnel analyze the costs of the prospective location and advertising center personnel analyze the marketing and branding benefits of the prospective location. Population trends, demographic information, crime rates, vacancy rates and other neighborhood factors are also analyzed. Traffic counts, complementary businesses, parking, lighting and other facility-specific issues are considered as well.

Approval
Signing an office lease agreement is a significant financial commitment. The doability analysis for the prospective location is reviewed by a lease committee whose members include senior franchise management, facility center management and advertising center management. If approved by the lease committee, the facility center enters into a lease agreement on the prospective location, which is then subleased to the franchisee. Oftentimes, landlords prefer a relationship with a larger established company instead of a smaller startup company, so franchisees are more likely to get the property that suits them if it is subleased from the facility center. The facility center’s willingness to enter into a lease agreement demonstrates senior franchise management’s confidence in the suitability of the location.

Negotiation
Once a location has been approved by the lease committee, the facility center begins lease negotiations in earnest. Facility center personnel have negotiated hundreds of leases. Their familiarity with the process improves the chances that the lease rates will be competitive and the lease terms reasonable.