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Checklist 7 of 10
Site Selection & Lease Negotiation
For brick-and-mortar concepts — location is a make-or-break decision.
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Market analysis
Confirmed territory demographics match the brand's ideal customer profile
Analyzed daytime vs. residential population ratios for the concept type
Mapped proximity to key traffic drivers (employers, schools, retail anchors)
Researched competition density within 3-mile and 5-mile radius
Assessed local economic health (unemployment, income trends, growth trajectory)
Confirmed sufficient population base for the concept in my territory
Identified 3–5 potential sites within territory for evaluation
Reviewed the franchisor's site selection criteria and requirements
Site evaluation (complete for each candidate site)
Visited each site a minimum of 3 times at different times of day
Visited each site on different days of the week including weekends
Counted vehicle traffic at peak and off-peak hours
Counted pedestrian traffic at peak and off-peak hours
Assessed parking adequacy, road visibility, and signage opportunities
Evaluated ease of ingress and egress for customers
Reviewed co-tenancy mix and quality of anchor tenants
Spoke with neighboring tenants about their experience at the center
Confirmed zoning permits the intended use BEFORE proceeding further
Confirmed utilities, HVAC, and infrastructure meet concept requirements
Assessed ADA compliance requirements and associated costs
Submitted site to franchisor for preliminary written approval before proceeding
Lease negotiation
Engaged a commercial real estate attorney for lease review
Submitted site to franchisor's real estate team for formal approval
Negotiated base rent to target 8–10% of projected gross revenue
Confirmed lease term aligns with franchise agreement term (with renewal options)
Negotiated renewal options (number of options and rate caps)
Negotiated tenant improvement (TI) allowance from landlord
Confirmed who controls the build-out and design approval process
Negotiated co-tenancy clause (kick-out right if anchor tenant leaves)
Reviewed and negotiated personal guarantee requirements
Confirmed exclusivity provisions — no competing tenants in the center
Confirmed signage rights, size, and placement allowances
Negotiated free rent period during build-out
Confirmed assignment provisions to allow future franchise transfer
Reviewed CAM (Common Area Maintenance) charges and annual caps
Confirmed HVAC, roof, and structural maintenance responsibilities
Obtained franchisor's formal written approval of the final site
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