What to Expect during the Site Selection Process

The importance of site selection
Even if criteria differ by business, every entrepreneur knows: location plays a determining role in the success of almost every franchise business.

To help you understand the value of good site selection support from a potential franchisor, we’ll take you through our process, and then give you some questions to ask potential franchisors.

The site selection process – how it works

1.  Preparing for the search
• We give our future franchisees an introductory manual with detailed site criteria for our industry, and the basics on commercial real estate.
• If needed, we provide a referral to a local commercial broker with experience in either franchising or our industry.
• For the franchisee’s particular market, we provide a market ranking report that ranks by zip codes, based on relevant demographics and other granular information.

2.  Identifying Potential Sites
• The broker takes the lead in the search, while we participate in weekly phone calls with the future franchisee and the broker.
• Once the broker identifies potential sites, we provide a detailed site analysis report for each site.
• The future franchisee selects one or several potential sites.

3.  Negotiating Terms
• We help to negotiate a non-binding letter of intent (the business details of the contract) for each potential site.
• Once a letter of intent has been finalized and the future franchisee has officially selected one site, we assist along with an attorney in final contract negotiations.

Questions to ask when vetting a franchise opportunity

1.  Do you have a realty department?
Considering the importance of finding the right site and the complexity of commercial real estate, having staff dedicated to site selection support makes a big difference.

2.  What support does the realty department provide?
Look for regular contact, market reports, advice about sites and help with contract negotiations.  A manual alone is almost never sufficient to find a great location on the right terms within a reasonable amount of time.

While the site selection process is crucial and complex, it can progress without difficulty if a potential franchisor provides the support you’ll need.

Contact us by posting questions and comments below.  If you have an idea for a topic you’d like to see discussed here, email us at blog@kiddieacademy.com.

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