Site selection is the data driven process franchisors and franchisees use to identify, evaluate and secure the best possible location for a new franchise unit. It involves analyzing demographic data, consumer behavior, local competition, Points of Interest (POIs), traffic flow and real estate characteristics to ensure the site aligns with the brand’s operational model and customer base.
A strong site selection process is vital because the physical location often determines long term franchise success.
The right site can dramatically increase revenue, customer traffic and brand visibility. Strong site selection:
aligns customer demographics with the franchise’s ideal buyer
increases foot traffic and conversion potential
reduces market risk
supports operational efficiency
improves financial performance
enhances the likelihood of franchisee success
strengthens brand reputation
Poor site selection is one of the most common causes of early franchise failures.
A typical site selection process includes:
Evaluating population density, household income, consumer demographics, lifestyle indicators and growth patterns.
Overlaying layers such as POIs, competitor locations, trade areas, drive time maps, isochrones and traffic corridors to understand how customers move within the market.
Analyzing site specific characteristics such as:
visibility
parking
accessibility
signage opportunities
co tenancy
ingress and egress
surrounding businesses
square footage and layout
Studying daytime population, commuter flows, pedestrian activity, anchor tenants, and neighborhood usage.
Reviewing rent, CAM charges, occupancy cost ratios, projected revenue and break even forecasts.
Franchisors typically approve or reject proposed sites to protect systemwide brand standards.
Site selection is closely connected to territory design:
strong territories often include multiple viable site options
mapping tools help evaluate location density and spacing
drive time and isochrone analysis reveal natural market boundaries
POI clusters highlight high potential retail corridors
competitor layers help avoid oversaturation
Zors’ mapping tools give franchisors the ability to evaluate sites using consistent, data supported criteria.
Site selection often depends on whether territories are exclusive, protected or open. Many agreements specify site approval requirements, protected radius buffers or location restrictions.
Site strength affects performance, meaning poorly chosen sites can undermine the credibility of earnings claims if systemwide location quality varies.
Franchisors must disclose whether they provide site selection assistance and the extent of their involvement.
Franchisors and franchisees may use:
radius maps
drive time maps
isochrone analysis
demographic overlays
competitor mapping
POI layers
trade area analysis
traffic count data
heat maps
mobile movement data
real estate brokerage tools
A combination of factors is often best when aiming for maximum potential.
Franchise Disclosure Document
Franchise Exemption
Notice Filing State
Non Registration State
Registration Filing State
Point of Interest Mapping
Contact Mapping
Franchise Registration Management
Franchise Territory Mapping
Integrated Document Signing
CRM Tools
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Last updated: November 26, 2025
