Leveraging Local Market Insights into the Site Selection Process

Real estate selection has become a strategic cornerstone in the competitive landscape of franchise growth. The choice of location doesn’t merely determine visibility - it can define a franchise's success for decades. For franchises like Sola Salons, which have expanded to more than 730 locations nationwide, site selection is paramount, impacting both franchisee success and client satisfaction. Aligning franchisee needs, client convenience, and local market insights is essential to establishing thriving, sustainable franchise locations.

Why site selection is crucial in franchising

Franchise success is often defined by how well a location can serve both the franchisee’s business model and the clients they serve. For many service-based franchises, the location must accommodate the operational needs of professionals while ensuring a comfortable and appealing environment for customers. This dual focus means site selections are often driven by factors like convenience, visibility, and local accessibility—ensuring both beauty professionals and clients feel positive about visiting the space.

When a new franchise location opens, it represents a significant investment in both buildout and marketing. Landlords, franchisees, and corporate partners typically invest heavily to create spaces that meet brand standards and are positioned for long-term success. Therefore, choosing the right location from the start is a strategic decision to help support a brand's mission.

Key market factors in real estate decision-making

Selecting a successful franchise site involves careful analysis of local market characteristics. This includes evaluating demographic trends, income levels, foot traffic, and competitive density. For instance, beauty franchises can use demographic data on population density and daytime traffic to assess whether a potential location can sustain high client activity. Additionally, examining existing beauty service providers in the area helps avoid over-saturation, ensuring a balanced ecosystem where new franchise locations can stand out.

Beyond demographics, factors like co-tenancy—neighboring businesses—and local amenities are also significant. Franchisees should seek locations along daily needs paths, such as near grocery stores, schools, and office buildings, to make franchise locations convenient for routine visits. This attention to local patterns allows the franchise to better cater to its clientele.

Leveraging data and technology in site selection

Today’s real estate decisions are driven by sophisticated data analytics. Third-party consumer intelligence technology supports franchisees in evaluating potential locations. Demographic maps and real estate site visits provide a multi-dimensional understanding of market conditions, allowing franchisors to present their franchisees with a consumable score for each site. This score simplifies complex data into actionable insights that help franchisees make informed, data-backed choices.

Site selection is further refined through collaborations with local brokers, whose insights about community trends and upcoming vacancies can provide franchisees with unique opportunities in tight real estate markets. For example, a franchisor might identify expiring leases or potential redevelopments, allowing the franchisee to secure prime locations in competitive areas.

Enhancing visibility and convenience

For some franchises, high foot traffic is often essential; however, Sola’s focus is on convenience and ease of access for professionals and their clients rather than capturing impulse visits. This flexibility allows the locations to operate successfully in various settings, from urban office buildings to suburban shopping centers and regional malls. The goal is to find spaces where clients feel comfortable and safe, with accessible parking and recognizable signage that make it easy for them to reach their beauty professionals.

Overcoming challenges in site selection

The current commercial real estate market presents unique challenges, with low vacancy rates and high construction costs. Franchisees often find themselves competing for limited spaces that fit the demographic profile and spatial requirements of their brand. To overcome these obstacles, franchises should work closely with brokers to access off-market deals and future openings. The aim should be to secure spaces that will support their franchisees’ growth without succumbing to inflated costs or compromising on location quality.

Building for long-term franchise success
Strategic, data-driven site selection is essential for sustainable franchise growth. By combining analytics with local broker insights and a focus on franchisee and client needs, franchises can secure well-positioned locations that support long-term viability and brand integrity. This approach not only sets each location up for immediate success but also creates a resilient network of thriving sites, strengthening the brand’s market presence and growth trajectory.

Dan Ogiba is vice president of real estate at Sola Salons.