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Who selects the site for a retail franchise?
There is not a definitive answer to this question as different franchisors work in different ways, often depending on whether they plan to take the head lease themselves and sub-let to the franchisee, or whether the franchisee will take the lease themselves. If the former, the franchisor is extremely likely to select the site; if the latter, the franchisor’s involvement may simply be to approve the location which the franchisee has found, although the selection process will probably have been based on criteria provided by the franchisor. Franchisors that are well-enough established to retain property search consultants, or indeed to employ their own, will have very clear requirements and will be constantly searching for sites against which to match a possible waiting list of potential franchisees. Newer franchisors are more likely to find the franchisee then leave it to them to scour their neighbourhood looking for locations. Whoever selects the site, it is essential that the franchisor gives his written approval and is happy that it’s potential is sufficient for the franchisee, assuming they diligently follow the system, to be successful.
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