Sitting down to the final contract signing with a franchisee marks an important moment in a franchisor’s path to growing their business. Despite the anticipation and relief between all involved parties, it’s more like the team gearing up at the starting line as opposed to crossing the finish. 

Ultimately, the defining factor when reviewing territory comes down to a single question: “Do you have a large enough customer base to be successful?” While there are several components to that question, this is what you are looking to determine.

There are many aspects of franchising that factor into the overall success. Creating the FDD, recruiting franchisees, and developing proprietary products typically take the spotlight. One that doesn’t receive a lot of attention is building out an effective advertising structure.

With franchises that require a brick and mortar location, it’s essential to ensure that the lease works in favor of the franchisee. Over my years practicing real estate law, I’ve seen many leases that leave operators exposed to being forced to move, having the lease terminated, or unable to sell their franchisee unit when looking to retire or cashout.