How do I check a fast food franchise’s location before buying a resale?

A store on the wrong side of the road, or one that is hard to turn into, can struggle even with a strong brand. The seller’s numbers show what happened. A visit shows why, and whether it is likely to continue. The drive-thru lane has its own page, so this one looks at the trade area around it.

Traffic by daypart

List what brings people to the site at each time of day. Schools, offices, a highway exit, a hospital or events may each matter at different hours. Visit on a weekday morning, at lunch, in the evening and late at night, and on a weekend. Write down what you see. Compare your notes with the sales by hour in the seller’s records.

Visibility, parking and access

Drive up as a customer would. Can you see the sign from far enough away to turn? Is the entrance easy to use, and does the parking lot work when it is busy? Check whether a median, a one-way street or a shared lot makes access harder. The drive-thru checks cover the lane itself.

Competition and road works

Look for quick-service restaurants being built or opened nearby, and ask the municipality about planned road changes, new intersections or closures. A change to how cars reach the site can matter as much as a new rival. Ask the franchisor whether it has plans for other locations in the area.

The lease at the site

Read how long the lease has left, and what renewal rights exist. A good site with a short lease leaves you exposed. BDC’s guide to commercial lease terms, listed below, explains terms you may meet. Ask your lawyer to review the lease before you commit.