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Strategic Locations

Finding complimentary businesses and locating next door is an obviously smart move for a budding franchisee. For example, if you are starting a coffee franchise, locating next to an Ace Hardware (caffeine hungry contractors) or CVS (heavy foot traffic) can double your sales over a generic strip mall.

In this instance, an Advance Realty locates next to a Daily Grind coffee house in an old firehouse.

In case you are curious….Daily Grind: $300K estimated initial investment, 5% royalty fee, 1% advertising fee, $30K franchise fee…about average

About Ryan Knoll

Attorney and advisor with an interest in franchising. Feel free to email me comments and questions on the "Contact Us" page.

2 comments

  1. I think Home Depot stores should have little restaurants, coffee shops or fast food. They have a tremendous traffic flow and many are in a hurry and hungry.

  2. Is rent impacted by your neighbor? If a Starbucks will be next door, you can benefit from the foot-traffic. Will the landlord increase the rent in that case?

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