How to Improve Franchise Real Estate Selection

When a franchise system is growing or good real estate is harder to find, it can be tempting to move forward with whatever sites are available. That can create problems later if those locations do not perform consistently or fit the brand as well as they should. A more thoughtful real estate strategy can help protect the brand, support franchisees and create a stronger foundation for long-term growth.

“The reason we’ve had successful openings is because we’ve been so intentional and deliberate in picking the real estate,” said Kordell Snyder, director of real estate at Layne’s Chicken Fingers*. “You want to continue to replicate what you’ve done, but obviously, times change. You’ve got to adapt and grow; otherwise, you stagnate. But at the same time, I’m not throwing anything against the wall and hoping it sticks.”

Franchisee partnership

One of the most important things a franchisor can do is to trust and work in partnership with its franchisees. Combining boots-on-the-ground knowledge from the franchisee with quantitative market data from the franchisor strikes a balance and supports a holistic approach to real estate selection.

“We leverage the knowledge of the franchisee who is either based locally or has market knowledge, combined with a real estate broker’s insights, then we layer in the data — comparative QSR sales, demographic growth rates and traffic counts,” Snyder said.

A hybrid approach like this allows brands to narrow massive development territories down to the highest-priority trade areas.

Choosing the right site can make the difference between a great opening week and long-term success for the franchisee. Ensuring long-term health requires being selective about site criteria and staying aligned with the brand’s core customer experience.

“Big openings are awesome, but really, where is the store six months after it opens? Has it continued to hold? Has it settled in?” Snyder said. “The reason we’ve had successful openings is because we’ve been so intentional and deliberate in picking the real estate. We say no way more than we say yes.” For concepts where visibility and easy access matter, standalone locations and drive-thrus often have an advantage over less traditional formats. That can be especially important in newer markets, where customers may need repeated exposure to the brand before they decide to stop in.

Improvement steps

Improving franchise real estate selection doesn’t have to be complicated, and a little bit of attention early in the process can go a long way. Here are a few steps to take to start improving your real estate selection process:

• Build a Collaborative Network: Franchise real estate selection shouldn’t be a single person or team’s responsibility. Each player brings a unique perspective, and collaboration with the franchisee and real estate brokers can lead to even stronger site selection.

• Focus on Established High-Traffic Anchors: Where possible, position new locations near proven traffic drivers like major grocery stores and top-tier retail concepts.

• Track Post-Opening Metrics: Evaluate site selection success based on sustained sales volumes, not just the first week’s performance. Use this data to extract lessons learned and continue improving on the next site.