What's the single most overlooked factor?

Zoning and permitted use. Operators fall for a high-traffic site and discover too late that their drive-through, signage, or operating hours aren’t allowed. Confirm permitted use in writing before you sign anything.

How does my franchise territory affect site selection?

FDD Item 12 defines your territory rights — whether it’s exclusive, whether the franchisor can open or sell nearby, and whether it can shrink on renewal. A strong site inside a weak or shrinking territory is still exposed to encroachment, so read Item 12 before you commit to a location.

Should the lease term match the franchise term?

Yes, as closely as possible. A lease longer than your franchise term can trap you if the franchise ends; a lease shorter than the term can force a move mid-franchise. Align lengths and renewal options, and confirm you can assign the lease if you sell.

Do I need a lawyer to evaluate a location?

You can score market and site factors yourself, but the lease, the FDD territory provisions, and the franchise agreement should be reviewed together by a franchise attorney — they have to fit, and mismatches are expensive to fix later. Scoring a location is the easy part; making sure the lease, territory, and buildout terms actually fit together is where deals go wrong. Reidel Law Firm reviews Franchise Disclosure Documents on a flat fee, including the Item 12 territory and Item 7 buildout terms behind any location decision. Get a flat-fee FDD review →

FRANCHISE LAW

Franchise Location Evaluation Checklist

Schuyler 'Rocky' Reidel July 13, 2023 4 min read