Choosing the right location for a franchise business can make or break its success. A well-selected site sets the stage for customer growth, strong revenue streams, and long-term stability, while a poorly chosen one can hinder even the best business plans. To shed light on the critical process of site selection, 1851 Franchise recently sat down with Rolling Suds CEO Aaron Harper, Larks Entertainment CEO Curt Skallerup and Glo Tanning CEO Onyi Odunukwe to learn more about their insights and experiences.

A Strategic Approach to Site Selection

Harper’s journey into franchising began with a commitment to scaling “boring businesses” that solve everyday problems. “We choose locations by focusing on market demographics and geographic factors, such as business hubs, high population density and areas with new developments and growing populations that have a robust service demand,” he said. This approach ensures franchisees are set up in markets primed for success and scalability.

For Skallerup, success comes from a priority on “finding great franchisees first and then look[ing] for properties in the markets they’re interested in.” Skallerup’s “Franchising in a Box” program provides franchisees with comprehensive support, including real estate tools powered by AI, weekly calls and guidance on construction and financing. “We have to get in a rhythm of talking to each other about what we’re doing,” he said, emphasizing the importance of collaboration.

Demographics and Data-Driven Decisions

Market research is a cornerstone of the site selection process for all three leaders. “Market research plays a crucial role in identifying the ideal franchise location by providing data-driven insights that reduce risk and improve decision-making,” Harper said, highlighting the importance of key data points like population density, growth trends and local business activity. “Combining this data allows franchisees to select locations with the highest potential for profitability and growth,” he said.

Odunukwe takes a similarly data-focused approach. “We are very data-driven and don’t allow emotions to influence the decision-making,” he said. Odunukwe emphasizes the importance of understanding the typical customer base rather than relying on general demographics. “For tanning, racial demographics are a significant factor,” he said, adding that each industry has unique considerations for identifying its target audience.

Learning from Successes and Challenges

Both Harper and Skallerup stress the importance of aligning location choices with proven strategies. “Franchisees succeed when their territories align with our strategic approach of targeting populations of at least 250,000 per territory,” said Harper. Meanwhile, Skallerup shared a cautionary tale about a franchisee who insisted on managing construction independently: “They overspent on unnecessary features and depleted their SBA loan,” he said, illustrating the risks of deviating from established systems.

Odunukwe’s experience reinforces the value of relying on data over intuition. He shared an example of a small town with multiple competing tanning salons: “The population in that city is 16,000 people. There are three other tanning salons besides us. That store doesn’t do amazing because there’s just too much competition and not enough people.”

Franchisor Support is Key

All three leaders highlight the importance of leveraging franchisor support during the site selection process. Harper explains that Rolling Suds provides franchisees with data-driven insights and established relationships with brokers and landlords. “Franchisors often provide site evaluation criteria or approval processes to ensure the location aligns with proven success models,” he said.

Similarly, Skallerup’s team ensures franchisees are fully supported through every step of the process. “We’re very interested in keeping their cost down, balance sheet strong and ensuring their success,” he said.

Odunukwe underscores the value of consistency and discipline. “We know the formula of what works and we need you to follow that. We’re very strict on that,” he said.

Laying the Groundwork for Long-Term Success

The right location can be the foundation of a franchise’s success. By focusing on data-driven decisions, understanding market dynamics and leveraging franchisor support, franchisees can position themselves for long-term growth. As Harper, Skallerup and Odunukwe have shown, a strategic and collaborative approach to site selection is essential for achieving profitability and scalability in the competitive world of franchising.

For more information on choosing the right location for your franchise, check out these related articles on 1851 Franchise:

• Location, Location, Location: Five Tips to Help You Choose the Right Franchise Real Estate
• Should You Open a New Location or Purchase an Existing Franchise?
• The 8 Essential Real Estate Questions Franchisees Should Ask Franchisors

Growing and selling franchises is difficult. No great franchise did it alone. Want to learn more about how 1851 helps franchisors grow their franchises with confidence? Visit www.1851growthclub.com and see what we can do for you.