Why Franchise Businesses Need a Dedicated Tenant Representative

By Alex Furst, Executive Director, Watch Hill Real Estate

Franchise ownership offers the best of both worlds: the power of national brand recognition and the independence of running your own business. But while franchisors provide the playbook, the responsibility of choosing the right location, one of the greatest predictors of success, ultimately falls on the franchisee. This is where a dedicated commercial tenant representative becomes essential.

With more than a decade of experience supporting franchise operators throughout New York City and the Tri-State Area, including brands such as The UPS Store, Verizon, and Fred Astaire Dance Studios, I have seen firsthand how the right real estate strategy can determine whether a franchise thrives or struggles.

What a Tenant Representative Does for Any Business

A commercial tenant rep is an advocate, strategist, and market expert. Their role is to level the playing field by:

• Identifying suitable spaces based on operational and financial needs

• Negotiating lease terms that protect the business

• Performing market analytics, comps, and financial modeling

• Managing the entire search and leasing process from start to finish

  
  

For franchise businesses, however, the real estate process becomes considerably more complex.

Why Franchise Real Estate Requires Specialized Expertise

1. Navigating Protected Territories and Trade Zones

Most franchises define strict territorial boundaries that cannot be crossed. A tenant rep who is fluent in franchise real estate understands how to interpret these agreements, evaluate trade zones, and avoid encroachment issues. This ensures long-term viability while keeping franchise expansion plans intact.

2. Meeting Franchisor Corporate Standards

Franchisors typically require specific site criteria, including minimum frontage, ceiling heights, parking ratios, electrical capacity, venting requirements, and brand-specific layouts. An experienced tenant rep coordinates directly with franchisor real estate and construction teams to confirm that each candidate site meets these standards before negotiations advance.

3. Demographic, Traffic, and Competition Analysis

Successful franchise sites are rooted in data. Understanding local demographics, daytime population, customer profile, pedestrian flow, vehicle traffic counts, and competitor placement is critical. Tenant reps with franchise experience know how to interpret this information and determine whether a location aligns with the brand’s customer profile. According to a 2024 Franchise Times and International Franchise Association report, top-performing franchise systems consistently identify strategic site selection backed by data as their highest predictor of financial success.

4. Serving as a Liaison Between Franchisee and Franchisor

Franchisees often face the challenges of entrepreneurship while navigating a large corporate structure. A tenant rep acts as a bridge, ensuring clear communication between both sides, advocating for franchisee needs, and aligning expectations throughout the process. This guidance keeps deals moving smoothly and reduces misunderstandings.

A Strategic Partner for Franchise Growth

Whether you are opening your first unit or expanding into a new market, the right location remains the foundation of long-term franchise performance. With over a decade of specialized experience and a track record representing nationally recognized brands, Watch Hill Real Estate provides the insight, negotiation leverage, and market strategy that franchisees need to secure the strongest possible site.

If you are evaluating a new territory, renewing a lease, or mapping out multi-unit expansion, let’s connect. Strategic tenant representation can be the difference between simply opening a franchise and building a thriving one.

Contact Alex Furst

Email: afurst@watchhill-re.com

Mobile: 347-281-3165