It’s all about location, location, location, right? Nine times out of 10, people who are searching for a franchise are looking to find a company that wants to open a franchise near them.

Can a Franchise Be Opened Near Me?

As The Balance Small Business says, an inherent advantage to franchises is “Franchisors only allow a certain amount of franchises to be open within a certain geographical region. You will usually be entitled to a certain area, and no other franchises (within your franchise system) can be open within that area.”

This is the concept of territory rights within franchising.

When you sign your franchise agreement, a part of the agreement will deal with your territory. Your franchise territory is where you will be able to conduct your business. However, in many cases—and maybe more importantly, territory designation will make clear how many franchises of the same brand will be able to compete with you in your area, if any.

For example, let’s say you’re interested in Brand A restaurant and, according to Brand A’s franchise disclosure document, franchisees are given a territory consisting of a two-mile radius. This means, using the restaurant as the center point, there can be no other Brand A restaurant within two miles from your restaurant in any direction (given you are in compliance with your franchise agreement). That’s a pretty favorable setup, right? You’re the only one customers can go to in that area for that particular product.

Another common way for territory to be described is by the use of a certain population (number of people or households) in a given area. For instance, Brand B home services defines a territory as being between 40,000 and 50,000 households with a specified income level or higher. Commonly, franchisors denote this by using the U.S. Census and assigning the franchisee a territory, by way of U.S. zip codes or county line boundaries, an area they will be allowed to service. If this is the case, then typically the franchisor will not grant a franchise for the operation of another Brand B franchise (or operate a company-owned Brand B unit of its own) in the zip codes or counties you’ve been assigned as your territory. (Again, this is given you are in compliance with your franchise agreement.)

On the other hand, there are franchises that don’t offer any territory protections whatsoever. If a franchise doesn’t offer any territorial protection, it means another unit of that brand could theoretically open across the street from you, making things a bit harder. It would be rare for a franchisor to allow this circumstance, however.

For the territory provisions of any franchise, be sure to study Item 12 in its franchise disclosure document.

Note: Keep in mind, having a delineated territory doesn’t mean exclusivity. You still have to compete with all of the other similar businesses selling a similar product or service around you, but you don’t have to worry about the competition coming from someone selling exactly the same product or service as you.

Picking a Franchise That Will Work Near Me

How do you pick a franchise that will work in your local area? The first thing is not to rely completely on popularity.

Simply because a franchise has a lot of locations overall doesn’t mean it’s going to be popular where you are. Fit is key. Is the local area you live in ready to support the franchise you’re interested in?

The best franchise for you is going to be one that (1) you have an interest in, but (2) has demand where you live as well. Perhaps you think you should open a cleaning franchise, and maybe there’s a moderate need for one around you. However, if the area you live in is truly in need of an auto repair shop, you could be much better off in the long run by opening the auto repair franchise. Of course, this is if you yourself have an interest and would be satisfied with running an auto repair franchise instead.

So how do you find what your area needs? Franchise consultants commonly suggest meeting with an area business consultant, talking to a business or marketing professor at a local college or university knowledgeable on trends in the area, or contacting your local Small Business Administration (SBA) district office for some guidance.

Franchisors are also top-level research sources. As explained above, they invest a significant amount of resources into knowing which territories can support their respective brands. If a franchisor is entertaining inquiries for new franchisees in your area, it’s already a good indication that the data it’s gathered is showing a positive match for its franchise brand.

How Do I Find a Franchise Near Me?

Finding a franchise near you is easy. At the top of the Franchise Direct website, you will find a “Location” tab. Click that tab.

From there, do the following:

• Select either United States of America or International Locations.
• If you choose United States of America, scan the list for your state. Then click on your state, and you will be presented with the franchises accepting inquiries from those interested in opening a location of that particular franchise in your state.
• If you choose International Locations, scan the list for your country. Then click on your country and you will be presented with the franchises accepting inquiries from those interested in opening a location of that franchise in your nation.

In addition, once you’re on a franchise or industry page, you can use the drop-down menus at the top of the page to not only select your location, but also narrow your franchise options down by industry and investment level as well.