Overcoming Real Estate Challenges in the Franchise Sector

June 21, 2025 - 09:09

An estimated 20,000 franchised establishments are projected to emerge by 2025, showcasing the resilience of franchisees and franchisors in a challenging real estate landscape. As the market grapples with rising costs and limited availability of suitable properties, both parties are adapting their strategies to thrive.

Franchisees are increasingly focused on smart spending and efficient use of space. With escalating rental prices, it has become crucial for them to identify locations that not only attract customers but also offer favorable lease terms. Many are exploring innovative designs and layouts that maximize the utility of smaller spaces, allowing them to maintain profitability despite higher overhead costs.

Franchisors, on the other hand, are refining their site selection criteria and providing more support to franchisees in navigating these complexities. This collaboration is essential for ensuring that new locations are strategically positioned to capture market share while remaining financially viable. As the franchise sector continues to grow, adapting to these real estate realities will be key to sustained success.