Who chooses the franchise location — me or the franchisor?

Usually you propose the site and the franchisor approves it. The franchisor’s site-selection support and approval rights are described in the FDD (Item 11 for assistance, the franchise agreement for approval criteria). Read both so you know how much latitude you have.

What is a protected franchise territory?

A protected or exclusive territory limits where the franchisor can place other units or sell to customers near you. FDD Item 12 spells out whether your territory is exclusive, whether it can shrink, and whether the franchisor reserves online or alternative-channel sales — all of which affect a location’s long-term value.

Should I sign the lease or the franchise agreement first?

Coordinate them. Don’t commit to a long lease before the franchisor approves the site and you understand the franchise term, and don’t sign a franchise agreement assuming a site you can’t actually secure. Reviewing the lease and FDD together prevents mismatched terms.

How do I know if an area has too much competition?

Map direct and indirect competitors against the demographics. Moderate competition can confirm demand; saturation means you’re fighting for the same limited customers. The goal is an underserved pocket of your target market, not just any vacancy. Choosing a location is part real estate, part legal review — the site has to work commercially and fit the territory, approval, and lease terms in your franchise documents. Reidel Law Firm reviews Franchise Disclosure Documents on a flat fee, including the territory and buildout provisions that determine whether a location can succeed. Get a flat-fee FDD review →

FRANCHISE LAW

How to Choose the Right Franchise Location

Schuyler 'Rocky' Reidel July 17, 2023