Franchise Location Selection:
Comparing Franchisor Real Estate Department and Commercial Broker Roles

Franchise location is a major cost factor, can have a large impact on customer counts, and could impact your ability to recruit and keep good employees. Finding the right location at the right cost is a critical success factor for your future startup business.

Your franchise real estate department should provide substantial guidance in selecting a franchise location.  However, the franchise real estate department will likely bow out when you get into the mechanics of negotiations for your location.  In fact, real estate laws may prevent your franchise from becoming involved in the purchase of your location. This is when your realtor and lawyer are likely to be the team you will need to count upon.

Leasing or buying prime beachfront real estate for your business location may feel good, but will increased customer traffic and your budget support the higher costs?

In most cases, the franchise will provide guidelines about what attribute the property must have. The franchsie will note when you ignore them in making a purchase.   That is for their own protection in case things go wrong later. While offering to be helpful generally, the franchise doesn't want to be held responsible for the consequences of your franchise location decision. Your franchisor is not likely to be licensed as a real estate broker in your state.   Thus, you should expect your realtor, not the franchise, to give you the greatest amount of "hands on" help in finding a location and negotiating the terms of the lease.

Commercial Real Estate Brokerage Services

Among commercial realtors, CTBT Global maintains a focus on real estate for startup franchises needing a retail location.  They also cover retail / industrial locations supporting automotive and other franchise needs.   CTBT Global  completes over $45 billion in transactions annually, managing over 200 million square feet of commercial space.

CTBT Global can help you positively position the real estate component of your startup business financing with Small Business Administration lenders. 

Representative clients include:

Click for a more extensive list of retail and franchise clients: CTBT-Terranomics Clients

For help finding a location to lease or buy for your new franchise, contact:   

Ander Vazquez  or Jamie D'Alessandro at CTBT for assistance.