Turning Vacant Retail into Franchise Growth Opportunities

An overlooked but potentially huge opportunity in franchising isn’t just consumer demand; it’s real estate availability. Across the country, many underperforming big-box retail spaces have created a unique opening for franchise systems ready to think differently about growth. Especially for experiential franchise concepts, this is not only a short-term solution but a fundamental rethinking of future brand expansion.

Historically, the lack of quality, large-format real estate was considered a major obstacle to franchise development. Now, the situation is reversed. Vacant retail space is increasingly becoming one of the most important assets available to franchises when considering their future development.

A new era for site selection

Thesheer amount of second-generation retail spacehas changed the standard of site selection in many ways. It’s no longer necessary to construct buildings from scratch or wait for developments to be completed before getting involved; now, sites that have been developed are preferred.

These sites already have several strengths, including infrastructure in place, parking, visibility, and access to nearby residential communities. Often, the centers in which these types of properties can be found still receive a lot of foot traffic but need an anchor to give them some life. With this trend, brands can have the best of both worlds: choosing to be highly selective while also being opportunistic about the kinds of sites that they occupy.

Experiential concepts as the new anchors

With the changing nature of traditional retail,landlords are rethinking what drives foot traffic.More than ever before, they’re turning to experiential brands, concepts that offer something consumers can’t replicate online, to become anchor tenants.

Franchises such as trampoline parks, family entertainment centers, and other experience-driven concepts are well-suited to meet the landlord's needs and serve as an anchor tenant. They don’t just fill space—they draw customers back again and again, boosting traffic across the entire retail center.

This standard has led to significant changes in the process of renting spaces for franchises. Landlords are more open to flexible deal structures and, in some cases, are proactively seeking out experiential tenants to backfill large vacancies left by traditional retailers. For franchise systems, that translates into stronger negotiating power and more favorable terms. Experiential concepts create destinations for guests and, in turn, increase foot traffic for the centers while also elevating the center they occupy. It allows landlords to add a tenant that supports surrounding businesses rather than taking sales away from them.

What franchisees should know

Although there are huge opportunities out there, taking on second-generation retail space requires careful thought. Franchisees need to understand the challenges that come with repurposing existing space. For instance, buildout costs can vary widely depending on the condition of the property and how closely it meets the criteria of your concept.On the flip side, there are plenty of built-in assets in such spaces, such as HVAC systems, bathrooms, and wiring, which could significantly shorten your time and construction budget.

Footprint flexibility is another key consideration. Large-format experiential brands have traditionally required very specific layouts, but today’s most successful systems are adapting their prototypes to fit a wider range of spaces. This flexibility allows franchisees to take advantage of opportunities that might have been overlooked in the past.

Lease negotiations are also evolving. With landlords motivated to fill vacancies, franchisees often have more room to negotiate tenant improvement allowances, rent structures, and lease terms. However, it’s important to balance short-term incentives with long-term viability, making sure the deal supports sustainable unit economics.

On the flip side, there are plenty of built-in assets in such spaces, such as HVAC systems, bathrooms, and wiring, which could significantly shorten your time and construction budget.

Growing fast by leveraging existing assets

At Altitude, we’ve embraced this shift bydeveloping our growth approach based on the way business is conducted today in the retail world. By focusing on existing infrastructure, we’re able to significantly accelerate timelines from site selection to opening. Instead of waiting 12 to 18 months for ground-up construction, many projects can move forward in a fraction of that time. This not only reduces costs but also allows franchisees to start generating revenue sooner, an increasingly important factor in a competitive environment.

We’re also working closely with landlords and developers to identify spaces that can be efficiently converted into high-performing locations. This approach ensures that both sides are aligned on expectations, timelines, and long-term success.

From weakness to strength

Franchises today are seeing a rare circumstance of market conditions:an excess of big-box retail real estate, increased desire for entertainment experiences, and a franchising business model designed for rapid expansion.

For franchisors and franchisees willing to adapt, this creates a powerful opportunity to turn retail disruption into a competitive advantage. It requires a willingness to rethink traditional development models, embrace flexibility, and move decisively when the right opportunity presents itself.

Empty retail properties aren’t a problem; they’re an asset. And for experiential franchises, they could prove to be one of the key drivers of success over the coming decade.

Robert Morris is the VP of development at Altitude Trampoline Park.