Buying a franchise: assessing your business location

Attractive premises do not necessarily make a good location for your franchise. A busy street may attract the wrong customers, while a less visible address may suit an appointment-based business. Before joining a franchise network, compare the concept’s requirements with conditions on the ground: the franchisor’s approval is no substitute for your own checks.

1. Define the concept’s needs before viewing premises

Start by asking the franchisor for a written description of the location they are looking for. It should go beyond phrases such as ‘vibrant area’ or ‘high footfall’. Which customers do you need to reach? At what times? Do they arrive on foot, by car, for an appointment or to make an impulse purchase?

Draw up a checklist that distinguishes essential criteria from preferences:

• visibility of the frontage from the main routes people take;
• proximity to workplaces, homes or complementary businesses;
• pedestrian access, public transport and parking;
• arrangements for deliveries and order collection;
• usable floor space and internal layout.

A lunchtime food business will depend particularly on the habits of people in the area at that time. A service aimed at families will need to be accessible when they are available. The right question is therefore not simply ‘how many people pass by?’, but ‘who passes by, why and when?’.

Also ask what types of location the concept has already operated in. Success in a shopping centre does not automatically translate to a residential street.

2. Assess relevant footfall on site

Carry out several observations on different days and at different times, matching your planned operating hours. Avoid relying solely on a viewing arranged for the most favourable time.

For each observation, record the date, time, weather and any unusual events. Distinguish between people passing by, those who stop and those who enter neighbouring shops. Also note the direction in which people are travelling: a frontage may be well positioned for the morning flow but barely noticed on the evening journey home.

Supplement your counts with practical checks of access routes:

• Is it easy to cross the road to reach the premises?
• Is the shopfront obscured by street furniture or vehicles?
• Are parking spaces available at the times that matter?
• Is the route accessible with a pushchair or wheelchair?
• Can deliveries be made without disrupting customer access or service?

Data from the landlord or franchisor can supplement these observations. Ask when it was collected, what area it covers and how it was gathered. An annual figure for an entire shopping arcade does not necessarily reflect footfall past your future door.

3. Understand the surrounding area and how it may change

Draw a simple map of the surrounding area. Identify direct competitors, but also businesses that meet the same need in a different way. For a quick lunch, for example, competition is not limited to brands offering the same cuisine.

Next, identify businesses and facilities that could bring in additional customers. Their presence is a potential advantage to investigate, not a guarantee: their opening hours and customer profiles need to align with yours.

Ask the local municipal council (mairie) and, where relevant, the inter-municipal authority (intercommunalité) about projects that could affect access or footfall: roadworks, changes to traffic flow, removal of parking spaces, new housing or the relocation of a public facility. Distinguish confirmed decisions from proposals that remain uncertain.

If you are taking over an existing business, investigate whether its current appeal depends on something vulnerable to change: a nearby employer, a major customer-drawing business or a temporary access route. Consider seasonality too. A visit during the holiday period can give a misleading impression of an office district or tourist destination.

4. Clarify what the franchisor’s approval covers

In France, pre-contractual disclosure is governed in particular by Articles L. 330-3 and R. 330-1 of the French Commercial Code, under the framework known as the ‘Doubin Law’. Where the statutory conditions apply, the pre-contractual disclosure document and draft agreement must be provided at least twenty days before the agreement is signed or any payment required in advance is made.

The prescribed content includes an overview of the general and local market for the products or services concerned, together with its development prospects. This overview does not, on its own, constitute a bespoke assessment of your location or a guarantee of success.

Ask the franchisor exactly what their approval means: checking that the floor space meets requirements, reviewing the surrounding area, visiting the site or carrying out a more detailed analysis? Make sure there is a written record of the criteria assessed, any reservations raised and any conditions that must be met.

If anything remains unclear, have your adviser review the commitments you are considering before you sign. The statutory disclosure period does not provide a general right to withdraw after signing.

Key takeaway: prepare a summary bringing together the concept’s criteria, dated observations, local development plans and the franchisor’s written assessment. Only choose the location once you have accounted for every significant mismatch between the business’s needs and conditions on the ground.