Site Criteria Defined

This Subject Area is where every Emerging Brand Franchisor should start prior conducting any site tours with brokers while trying to identify potential locations for their new franchises who have signed an FDD.

As an Emerging Brand Franchisor, you likely have successfully opened your first location, or perhaps you have already launched several successful sites, which then has led you to take on the topic of franchise world of expansion.

Having a clearly defined site criteria will enable your new franchisees, as well as any assisting brokers, to embrace the site selection and leasing process with the knowledge and confidence that is necessary to identify, negotiate for, and sign a binding  lease for a retail location. This lease typically represents a six-figure, multi-year investment for the franchisee, therefore it is the crucial foundation for the ongoing business success of that franchisee. 

So, where do you start?

At Premier Retail Support (PRS), we have assembled more than 100 site criteria illustrations from national franchise and retail chains that you can use as templates in order to develop the appropriate site criteria for your brand.

2.    Pick retailers and franchise brands that most closely resemble your “use.”
3.    Make your list of the individual variables that are most important to those retailers because that is where you will start to build your site criteria.
4.    In no particular order, their specific criteria will include, but not be limited to:

•    Store square footage.  (Example: 1,800 to 2,200)
•    Desired minimum store frontage.  (Example:  20’)
•    Daily traffic counts on access streets  (Example:  25,000 ADT)
•    Lack of left-turn access (roadway medians / no divided highway) sites
•    High-traffic intersections
•    Signage on building, marquee or pylon
•    Clear, unobstructed site-line to storefront from street
•    Ideal nearby co-tenants as customer traffic generators (Example:  Grocery stores, Drug stores, Liquor Stores, Theatre, Gyms, Hospitals, Restaurants, nearby “service” businesses, Wal-Mart, Big-box retailers)
•    Other Traffic Generators. (Example:  Colleges, Entertainment, Stadiums, Resorts, Power Center or Mall for regional customer draw, lifestyle centers, office) 
•    Significant concentration of community-focused “daily use” shopping venues such as post offices, banks, upscale coffee shops, popular apparel, home furnishings, bookstores and hair salons
•    Drive-thru availability  (if applicable and desired for your use)
•    Outdoor seating
•    Ample parking, preferably with defined spaces (Example: 25-40 stalls)
•    Residential population defined. (Example: 15,000 within 3 miles)
•    Median Household Income defined.  (Example: middle to upper $40,000 minimum)
•    Education levels (if applicable)
•    Daytime Population defined. (Example: 15,000 employees, 2-mile radius)
•    Priority of Site Acquisition. (Example: Purchase, Ground lease, NNN lease, BTS)
•    Physical Attributes.  (Example: High Vehicular Visibility, Full Access, no right in, right out)
•    Preferred  AM or PM side of road 
•    Free standing or Inline location defined
•    Receiving dock required?
•    Multi-Ethnic Mix desired. (Example:  African American, Hispanic, Caucasian)
•    Competition defined

The above list of 25 variables that “build” a site-criteria may seem overwhelming. This list is provided for you to enable you to build a spreadsheet of up to 25 variables for you to compare your existing locations’ characteristics with the parameters of those locations being considered.

Start by making a spreadsheet list of your open and committed locations. 
Across the top of the sheet will be their specific address.
On the second line include their existing annual sales or the pro forma sales you have projected during the site approval process.

Now, down the left side of the spreadsheet list the 25 variables we have provided. You can change the order so that the variables you have in your file (to date) will allow you to fill in more and more blocks of information.   You will not have all of this information and we don’t expect you to. 

Start with the easy variables like square footage, store frontage, traffic counts, income and population figures. Once you start building this “chart” you will begin to see that certain site characteristics have been contributing to your highly successful locations and the more challenging locations, not as profitable, may not have the same attributes as your more successful locations. 

What you are trying to do is identify the ideal criteria from your most successful locations and define that criteria moving forward so you, your broker and your new franchisees focus on those types of locations with the highest chance of success.

Once this “chart” is filled in to the best of your ability, you will be able to prepare a site criteria package or flyer that includes:
•    Optimal Site Criteria
•    Store Space Requirements
•    Demographic Requirements
•    Contact person for site submittal packages

Then you will define approval requirements for submitted sites to include:
•    Site Plan with space indicated and dimensions
•    Actual street address with zip code
•    Tenant list
•    Demographics
•    Economics
•    Lease term
•    Tenant allowance
•    HVAC requirements
•    Utility requirements.  (Example: Gas, Water, Electric needs defined)
•    Finish out preferences
•    Traffic counts
•    Location map