Reading time: 2 minutes

Location, location, location. These words run true for franchise businesses as well. Today in our “Franchise Lawyer Special” series: choosing the right location and premises can be key to the success of your franchise business. As with any business, bringing the right clients in the door will dramatically affect the sales and reputation of your business.

With the increase in online businesses the physical presence of some businesses has become less significant. However, a large number of franchises still rely heavily on a physical presence  on our streets.

What are my options for choosing a premises?

There are a number of options available for securing your franchise premises:

  • Franchisee leasing a commercial premises: This is the most common option and has a relatively low barrier to entry. It is important to ensure that the lease term corresponds with the franchise term.
  • Franchisor leasing a commercial premises. Large shopping centres often prefer to lease their premises to known franchisors as opposed to individual franchisees. In this case the franchisor licences the premises to the franchisee for the term of the franchise.
  • Buying a commercial premises: This is a major financial investment and this option is rarely adopted by franchisees.

How do I decide on a location?

This will depend very much on the product or service your franchise business is offering. Are you running a hairdressing business or a fast-food chain? Finding a location on a main road or in a busy shopping centre may be advisable if you are running a business that is dependent on passing trade.  You will most likely find higher rental costs in these locations so it is important to factor this in to your business model when determining the viability of the business.

A franchise agreement may specify the exact location of your premises or limit you to opening the franchise business in a defined territory. You should familiarize yourself with the restrictions imposed under the franchise agreement before commencing your due diligence on finding your ideal franchise location/premises.


Once you fully understand where you can operate your franchise business under the franchise agreement, you should dedicate considerable time and resources to finding your ideal location, as getting it right will be paramount to success. To speak with a franchise solicitor, contact LegalVision on 1300 544 755.


How Franchisors Can Avoid Misleading and Deceptive Conduct

Wednesday 18 May | 11:00 - 11:45am

Ensure your franchise is not accused of misleading and deceptive conduct. Register for our free webinar today.
Register Now

New Kid on the Blockchain: Understanding the Proposed Laws for Crypto, NFT and Blockchain Projects

Wednesday 25 May | 10:00 - 10:45am

If you operate in the crypto space, ensure you understand the Federal Government’s proposed licensing and regulation changes. Register today for our free webinar.
Register Now

How to Expand Your Business Into a Franchise

Thursday 26 May | 11:00 - 11:45am

Drive rapid growth in your business by turning it into a franchise. To learn how, join our free webinar. Register today.
Register Now

Day in Court: What Happens When Your Business Goes to Court

Thursday 2 June | 11:00 - 11:45am

If your business is going to court, then you need to understand the process. Our free webinar will explain.
Register Now

How to Manage a Construction Dispute

Thursday 9 June | 11:00 - 11:45am

Protect your construction firm from disputes. To understand how, join our free webinar.
Register Now

Startup Financing: Venture Debt 101

Thursday 23 June | 11:00 - 11:45am

Learn how venture debt can help take your startup to the next level. Register for our free webinar today.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Innovation Award 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Award 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Financial Times Award 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year Award 2021 Law Firm of the Year - Australasian Law Awards
  • 2019 Most Innovative Firm - Australasian Lawyer