An inferior location may be less expensive in the short term, but will cost more in marketing costs and when it's time to sell. Franchisors offer real estate knowledge and relationships to help their franchisees get the best possible location at the best possible price, giving them the best possible start.
Opening a restaurant or retail business requires thorough analysis of site availabilities, location demographics, market rents, and competition.
In the retail and restaurant businesses, a prime location is critical.
Franchising offers significant advantages in site selection due to the real estate expertise and established relationships of the franchisor.
One of the great truisms in the retail and restaurant businesses is that it's all about "location, location, location." You can fix bad systems, bad management and bad staff, but fixing a bad site is a challenge most companies should avoid at all costs.
A bad location may save money on rent in the short term, but it will cost you more over time. The best form of marketing for any restaurant or retail store is its location. A good site also gives you two chances to make serious money — while you're operating the business, and then when you want to sell the business. Don't forget, a lease is a contract. If, for some reason, your business doesn't succeed, you can't walk away from the lease. You must keep paying for that shuttered store or restaurant until you negotiate an exit.