What Do Entertainment Franchises Look For in a Market?

There are many factors that franchisees need to consider when choosing a location: Demographic considerations such as population density, high-income zip codes and the average age of the population can be important factors, for example.

But that’s not the only factor to consider. 

Smaller Markets Can Mean Smaller Store Footprints

For instance, 810 Billiards & Bowling*, a rapidly expanding location-based entertainment (sometimes known as an LBE) franchise, looks for markets that suit its size. 

“We decided that we’re going to be the smaller footprint venue, middle-market solution in the entertainment franchise space because that opens up a lot of smaller markets that the larger competitors can't justify,” said Mike Siniscalchi, 810’s president. “We don’t have to open a 60,000 square foot space to work. A smaller footprint can work very viably and very profitably, and for a reasonable investment cost.”

It currently has three corporate-owned South Carolina locations in Myrtle Beach, North Myrtle Beach and Conway and has a franchise slated to open in Greenville. Additionally, it just opened a franchise location in Chandler, Arizona and has plans to open another location in Fort Smith, Arkansas. 

From a business perspective, Siniscalchi says 810 requires a smaller investment than its 60,000-square foot competitors that are restricted to places with large population centers. 

Think About What Your Unique Brand Experience

Beyond the demographics of an area, consumer behavior is also important. Franchises use complex models to determine the audience demographics, market saturation and behavior of an audience to help narrow the search. 

“Two factors become especially critical when selecting sites for LBES, consumer profiles and content mix,” said Tim White, vice president at consumer intelligence firm Buxton. “It is important to find pockets of consumers who are interested in not just the general activity, like skydiving, but also in your specific brand’s version of that experience. From a content perspective, LBEs tend to thrive in areas with other entertainment draws – like restaurants and movie theaters.”

Do Some On-The-Ground Investigating

But you can drill down even further when examining market potential. After you do your analysis on the computer, White says people should physically visit the site they’re considering to understand traffic patterns, foot traffic, entrances and exits to a parking lot, the kind of neighbors a shop will have and other variables that can have an impact on a store’s performance. 

But even then, that may not be enough. Pinot’s Palette, a franchise that offers a “paint and sip” experience allowing customers to learn to paint in a social environment, advises that it can be tricky to balance finding the right site even in a market. 

“We’ll go ahead and tell you a secret,” the brand writes on its website. “There’s almost no such thing as the perfect site. Site selection is a thoughtful balance of numerous factors. In addition to a desirable zip code, consider site-specific details like visibility from main thoroughfares and what kind of customers patronize the neighboring businesses. The most attractive spots come with the highest rents, so if it’s your first franchise, don’t expect to have it all.”