Location Availability and Potential of Franchises in the U.S.

Hi in today's video I'm going to talk about how franchises study the market potential in certain areas and also about availability.

Many E2 Visa candidates already have chosen some places they would like to live in the US, maybe not just one city, but locations they would be open to considering. Florida, by the way, is one of the most desired States people have in mind; the weather, local economy, and infrastructure are very appealing for many foreigner investors.

Regarding franchises and locations, they are two basic aspects to consider: The first one is to understand if the brand can legally sell franchises in a particular state. Most franchisors operate Nationwide, and even though in some states there are some legal requirements they need to fulfill; usually that's is not an issue. The second aspect is to understand with the franchisor if the desired market is not sold out.

Typically, franchises establish different territories in a particular area, and in many cases, those territories are exclusive for each franchisee operates without cannibalization of the market. To determinate the territory, each brand has its metrics they have already tested, enabling them to target the demographic with higher chances with success.

For example, senior care franchises may look for the minimum household income and people above a certain age in a specific area, with multiple zip codes, to create a territory where the franchisee will have enough demand to succeed. A brick and mortar franchisee may also look for some specific demographics around the operation location, but also other factors as foot traffic, vehicles accessibility, or any other aspect relevant for their concept.

So, to summarize, most franchises will have good potential especially in big cities, and availability as long as they are not sold out in that area. When talking with the franchisor, they will be able to give specific information about how it works with their brand.