What are the most important questions to consider when picking a franchise location in 2026?
A winning franchise location in 2026 depends on how well you understand your market, your competition, and the long‑term viability of the site. The smartest operators are treating location selection as a data‑driven decision, not a gut feeling.
Core Questions Every Franchise Buyer Should Ask in 2026
1. Who exactly is my target customer here?
- Match the neighborhood’s demographics to your brand’s ideal audience.
- Age, income, lifestyle, and daily routines all matter.
- Different concepts thrive in different environments — urban professionals, families, seniors, etc.
2. Is there enough demand — and not too much competition?
- Map direct and indirect competitors.
- Look for “white space”: areas with proven interest but room for another operator.
- Beware of oversaturation, but also be cautious if there’s no competition — that can signal weak demand.
3. What territory rights does the franchisor offer?
- Will you have exclusive territory?
- How close can another franchisee open?
- Review the FDD carefully to understand boundaries and protections.
4. How visible and accessible is the site?
- High‑traffic roads, transit access, and strong signage opportunities are essential.
- Consider drive‑time analysis: can your core customers reach you within 10–15 minutes?
- Parking, walkability, and ease of entry all influence conversion.
5. Does the local community support this type of business?
- Look at neighborhood culture, spending habits, and community priorities.
- Some areas embrace fitness, dining, or family services more than others.
- Future city plans (redevelopment, transit changes, zoning shifts) can dramatically affect long‑term success.
6. What are the real costs — not just the rent?
- Evaluate rent, CAM charges, utilities, build‑out, and long‑term affordability.
- Consider whether the economics still work if sales ramp more slowly than expected.
7. Is the site aligned with the brand’s operational model?
- Some concepts require heavy foot traffic; others rely on destination visits.
- Match the physical space to the franchise’s proven success formula.
- Work with the franchisor’s real estate team — they often have data you don’t.
8. What does the competitive landscape look like over the next 5–10 years?
- Are new developments coming?
- Will the area grow, stagnate, or decline?
- 2026 is a year of shifting consumer patterns — remote work, hybrid schedules, and suburban migration all influence demand.
9. How stable is the landlord and lease structure?
- Favor landlords with strong reputations and transparent terms.
- Negotiate renewal options, rent escalations, and tenant improvement allowances.
10. Does this location support long‑term brand growth?
- Think beyond opening day:
- Can you expand hours?
- Add services?
- Handle increased volume?
- A great location should grow with you, not limit you.
About Evan Hackel
Evan Hackel, MBA, CFE (Certified Franchise Executive), is an author, speaker, consultant, and entrepreneur who has helped launch more than 20 businesses and led brand portfolios exceeding $5 billion in systemwide sales. He is President of the New England Franchise Association, creator of Ingaged Leadership, author of Ingaging Leadership: The Ultimate Edition, and CEO of Ingage Consulting.
To explore speaking, consulting, or franchise advisory support, visit www.evanhackel.com.
