What Do Franchises Have to Do With Your Real Estate?
Whenever someone asks you what affects your home’s value, your first thought might be local crime rates, the area’s population growth, or perhaps the schools nearby.
While those answers are all correct, here’s a crucial real estate tip I’ll bet you missed: your proximity to certain franchises affects your home’s value.
According to a 2015 Zillow report, “between 1997 and 2014, homes within a quarter-mile of a Starbucks increased in value by 96 percent, on average, compared to 65 percent for all U.S. homes…”
And that’s just one type of franchise.
Franchises like popular coffee shops, grocery stores, and gyms can bring more than just convenience to a neighborhood—they can drive up home values by attracting people to the area. This article dissects this real estate tip by showing how franchise data impacts real estate appreciation and how you can use this surprising metric to make smarter decisions.
Why Do Franchises Affect Home Values?
Franchises are different than regular businesses, and this increases your potential for appreciation. Here are three reasons why:
1. They Attract More People
When well-known franchises open in a neighborhood, they often draw more people to the area. Whether it’s families shopping at a big-name grocery store or professionals grabbing coffee on their way to work, these businesses make a neighborhood more attractive.
2. They Signal Stability
Franchises don’t just pop up anywhere. These large companies do a lot of research to pick locations that are likely to succeed. So when a new franchise moves into a neighborhood, it’s a sign that the area has potential for growth and stability.
3. They Increase Convenience
Having a grocery store, gym, or fast-food chain nearby makes life easier for residents. People are often willing to pay more for homes in areas where they don’t have to travel far for their daily needs.
What Types of Franchises Have the Biggest Impact?
Not all franchises affect home values in the same way.
For example, research by ATTOM Data shows that, “While homes near a Trader Joe’s realized an average 5-year home price appreciation of 35 percent, and homes near a Whole Foods saw an average appreciation of 33 percent, ALDI had a slight advantage at 41 percent.”
Pro real estate tip: Some businesses have a bigger influence than others. Here are 5 types of franchises to watch for:
1. Grocery Stores
Big-name grocery stores often have the most impact on home values. People want to live close to stores where they can get fresh, affordable food.
2. Coffee Shops
Popular coffee chains are a huge draw, especially for young professionals. They’re often seen as a sign of an area becoming trendy or upscale.
3. Gyms and Fitness Centers
Health-conscious buyers love the convenience of nearby fitness options. Gyms are often a sign of an active, vibrant community.
4. Fast Food Chains
While fast food locations may not raise home values as much as grocery stores or gyms, they still contribute to convenience and attract foot traffic.
5. Big-Box Retailers
Large stores that sell everything from clothing to electronics bring jobs, convenience, and more people to an area, all of which can help boost property values.
How to Use Franchise Data for Smarter Decisions
If you’re a homeowner, buyer, or investor, using franchise data can give you valuable insights. Here’s a step-by-step approach to putting this information to work:
1. Look for Well-Established Brands
Franchises that have been around for decades are a safer bet than newer ones. Their presence signals confidence in the neighborhood.
2. Check for Variety
2. Check for VarietyA mix of different types of franchises—like grocery stores, fitness centers, and retail—is a sign of a well-rounded community that attracts a diverse group of people.
3. Track New Openings
Keep an eye on areas where franchises are just starting to move in. These are often neighborhoods on the rise, offering great opportunities for appreciation.
4. Pair Franchise Data with Other Metrics
Don’t rely on franchise data alone. Combine it with income trends, crime rates, and population growth to get a full picture of a neighborhood’s potential.
5. Buy Close to the Franchise
Make sure your home is nearby the franchise you’ve chosen. Real estate tip: Generally, the closer you are, the better.
Remember, research has shown that, “A home that is now near a Starbucks would have sold, on average, for $137,000. A home that is not near a Starbucks would have sold, on average, for $102,000.”
How BrightInvestor Makes Franchise Data Easy
Before I started using BrightInvestor, finding franchise data quickly was a hassle. I used maps, random news articles, local gossip, or just driving the streets.
But it still took too long, especially when I’d want to compare the locations of the franchises with the available homes in the area.
Now, all the data and tools are wrapped into one, thanks to StoreRocket providing franchise data.
With BrightInvestor, you can:
- View Franchise Locations by Radius: See where major franchises are located and which areas they’re moving into.
- Layer Franchises with Other Data: Compare data types like population growth, income, crime rates, and more while seeing franchises simultaneously.
- Toggle Your Favorite Franchises: Instantly swap between preferred franchises or view multiple types at once.
By using BrightInvestor, you’ll have all the tools to make smarter, faster decisions, backed by data you can trust.
Why Franchise Data Should Be Part of Your Research
Franchise data is one of the most overlooked factors in real estate, but it’s also one of the quickest and simplest real estate tips. Whether you’re a first-time buyer or a seasoned investor, understanding how franchises influence home values can help you stay ahead of the curve.
Start looking at your neighborhood differently. Is there a new coffee shop opening? A grocery store being built? These changes might seem small, but they could mean big things for your property’s value.
Ready to See Franchise Data in Action?
If you want to take your real estate decisions to the next level, BrightInvestor is the tool for you. With franchise data and so much more, you’ll have everything you need to spot opportunities and make informed choices.
👉 Start exploring franchise data today by signing up for your BrightInvestor account here!