When you think of a franchise, you likely picture locations in strip malls and drive-thrus. But these days, you’ll find non-traditional franchise locations popping up in unexpected places like airports, military bases, gas stations, and even college campuses.
Non-traditional locations represent quite a different business proposition for franchisees, and there are pros and cons to consider. In this article, I’ll walk you through what exactly a non-traditional location is and explain why they’re taking off in recent years.
Key Takeaways
- Non-traditional franchise locations are located inside high-traffic spaces rather than stand-alone stores.
- Smaller footprints mean lower build-out costs. However, non-traditional locations also come with stricter venue rules and fees.
- Non-traditional franchises often come with built-in crowds that can accelerate your growth and profits.
- The most popular locations for non-traditional franchises are airports, malls, military bases, gas stations, and universities.
Traditional vs. Non-Traditional Franchise Locations: What’s the Difference?
Most traditional franchises are standalone stores built for visibility and come with a predictable operating setup. This means your franchise operates inside an entire building or at least a unit of a larger space, like a strip mall.
Non-traditional franchise locations flip that model by operating inside another venue or in partnership with a larger space. In many cases, non-traditional locations tweak their business model to fit the situation. For example, a sandwich shop located inside a hospital might offer a limited menu with faster service to meet the needs of busy hospital staff.
The key difference is that with non-traditional locations, you’re operating within someone else’s space, not your own. That means different rules, costs, fees, and a different customer base.
Think about it this way: when customers visit your standalone storefront, they’re coming specifically for your product or service. However, if your franchise is inside an airport or college campus, customers aren’t there specifically to find you; they’re already there for something else. Your franchise simply has the opportunity to capitalize on the foot traffic based on convenience. It’s an entirely different mindset and buying behavior.
You might have less control over layout or branding, but you could gain access to built-in traffic that a traditional storefront would have to work hard to attract.
For franchisees, it’s a tradeoff. Non-traditional spots lower overhead and provide faster exposure, but tend to have tighter restrictions and more moving parts.
Common Locations for Non-Traditional Franchises
- Airports: High foot traffic, long wait times, and a captive audience make airports a strong fit for grab-and-go food, coffee, and convenience concepts.
- Malls & Food Courts: While malls have changed, food courts and high-traffic indoor centers still offer strong visibility for fast-casual brands and kiosks.
- Gas Stations: Franchises selling pizza, fried chicken, or coffee often partner with convenience stores for smaller footprints and shared overhead. Hunt Brothers Pizza is one of the most successful examples of this.
- Universities: College campuses are perfect for fast, affordable food and drinks, especially brands that appeal to younger consumers.
- Military Bases: Opening a franchise inside a military base can be a major challenge. Once approved, you’ll have limited access to customers due to the closed-off nature. However, military bases offer a built-in community and long-term customer loyalty once approved.
- Events & Stadiums: Events such as music festivals, sports matches, and concerts only offer temporary sales; they offer an extremely high volume of foot traffic. A single college football game can host upwards of 100,000 fans!
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Common Examples of Non-Traditional Franchises
There are many different franchise industries, and brands are especially well-suited for non-traditional locations. Here’s where you’ll see them most often:
Quick-Service Restaurants (QSRs)
Food is the biggest player in non-traditional franchising. Brands like Auntie Anne’s, Cinnabon, Subway, and Dunkin’ thrive in airports, malls, and gas stations thanks to their compact setups and fast service models.
Coffee & Beverage Concepts
In a world where two-thirds of Americans drink coffee daily, it shouldn’t be surprising that coffee franchises thrive.
Brands such as Starbucks and Tim Hortons capitalize on non-traditional locations because coffee and tea brands do particularly well in universities and transit hubs. You’ll even find them inside office buildings or retail stores.
Health & Fitness
Compact fitness franchises like Snap Fitness and wellness brands such as Massage Envy are expanding into places like hotels, universities, military bases, and apartment complexes. The convenience of these locations can boost memberships and ultimately revenue.
This trend in non-traditional health and fitness franchises follows recent growth in the wellness sector; for instance, the global spa market is projected to reach USD 347.9 billion by 2032.
Professional Services
While it may seem like a less obvious industry, professional services franchises such as printing shops (Minuteman Press), shipping centers (UPS), and tax prep services (HR Block) can thrive in non-traditional locations. However, because these services aren’t relevant in every setting, success depends heavily on the context.
Non-traditional professional services franchises work best in places with a built-in need, like college campuses or government buildings.
Vending Machines
Did you know that the global vending machine industry is projected to reach more than $50 billion in the next decade? The entire concept of a vending machine is “non-traditional” because the business model thrives with very little location dependence. A vending machine can be successful everywhere, from a train station to an office building, a gym, or simply the side of the road.
Why Non-Traditional Locations Are Appealing
In the past few years, non-traditional franchises have become increasingly popular. Here are some of the reasons franchisees choose them over traditional locations:
They (Sometimes) Mean Lower Upfront Costs
Non-traditional locations come with lower build-out needs, which generally translates to lower costs and reduced rent. You might share utilities with other brands and have lower overheads as a result. This is especially true if you’re operating within an existing venue like a gas station or campus. You may also be able to skip some of the other expenses tied to standalone real estate, like outdoor signage. Since non-traditional locations can often be smaller units that offer stripped-down products and services, your staffing costs may be lower, too.
You’ll Get Built-In Foot Traffic
When you purchase a standard franchise, you’ll have to spend a lot of money on marketing to drive people in your area through the door. With a non-traditional franchise, you’ll set up shop where customers are already gathered, which often means your marketing needs will be next to zero. Airports, malls, universities, and event venues all provide a steady stream of potential customers. If these customers fit your franchise’s target demographic, you’ll likely start making a profit quickly after opening your doors.
There Are More Flexible Setup Options
Many non-traditional franchises use kiosks, carts, or compact layouts that are easier and cheaper to install. That flexibility makes it possible to test new markets or run seasonal locations without locking into a long-term lease.
Brand Visibility in High-Impact Spaces
For franchisors, being seen in an airport, stadium, or college campus can introduce your products to a new customer base and boost your brand’s credibility. These are high-visibility environments where brand awareness can grow quickly, especially if you’re a smaller or emerging franchise.
There Is an Opportunity to Reach Untapped Markets
Traditional locations can get saturated fast. Non-traditional spaces give franchisees a chance to reach new audiences like military families, students, or travelers who might not otherwise come into contact with the brand in their everyday routines.
Challenges of Operating a Non-Traditional Franchise
Running a non-traditional franchise is not all sunshine and rainbows. Here are a few downsides to consider:
Limited Control Over the Space
When you’re operating inside someone else’s venue like an airport terminal or a gas station, you don’t always get a say in layout or hours. You can even be pretty restricted in terms of signage. This can make it tough to deliver the exact brand experience you want or make changes on your terms.
Unique Operating Rules and Red Tape
Non-traditional locations often come with extra layers of regulation. Airports, military bases, and universities can be particularly difficult to operate in and may have their own strict approval processes or security requirements.
Operating Hours Rules or Seasonality
Unlike a traditional storefront, non-traditional franchise owners are often limited to the venue’s operating hours or tied to seasonal events. For example, a franchise in a stadium or festival space might only operate a few days a month. So, cash flow in these locations can be unpredictable.
There May Be Higher Fees or Revenue Share Agreements
Some non-traditional landlords (especially in airports or campuses) charge higher rent. Another common set-up is commission-based fees. You might also have a mixture of both. Paying these fees on top of royalties and other expenses can quickly add up and affect the profitability of the franchise.
This is why it’s always important to do your calculations to make sure the built-in traffic justifies the extra costs.
You Might Have Staffing Challenges
Finding and keeping employees can be tougher when you’re in a restricted or remote location. Background checks, irregular shifts, or unusual hours can make hiring more difficult than in a typical high street or retail setting.
How Franchises Are Expanding Through Non-Traditional Locations
While standalone franchises remain the most popular option, non-traditional franchise locations are heating up and have become a deliberate growth channel for big and emerging brands. Here are a few key trends driving the shift:
1. Traffic-Rich Real Estate Is Getting Pricier and Scarcer
In many parts of the U.S., real estate is becoming extremely expensive, and is a barrier to entry for a lot of smaller franchisees.
U.S. high-street rents jumped around 11% year-over-year in 2024. Meanwhile, CBRE projected the U.S. retail availability rate to fall to a record-low of 4.6% in 2024. This means just 14 million square feet of new multi-tenant space, which only meets half the level of demand.
Setting up shop in an existing venue is a great way to cut down on rent prices and ensure that you’ll have a steady flow of customers.
2. Airport & Travel Center Food Sales Keep Climbing
Fast dining in travel is on the rise, and people are spending more than ever at airports, train stations, and bus depots. For example, the airport quick-service restaurant market specifically is set to grow from $175.6 billion in 2024 to $185.9 billion in 2025.
Airports are also investing in this trend by actively upgrading their concession areas to improve the travel experience. Orlando International and T4 in JFK both awarded multi-million dollar food and beverage tenders in 2024.
3. Dual-Purpose & Micro-Footprint Models Are Scaling Fast
Big brands are meeting transit locations in the middle by introducing dual-purpose or micro-footprint models to operate franchises.
For example, IHOP’s “Flip’d” counter-service format for units between 500 and 1,800 square feet caters to airports, university campuses, and other travel centers. Their parent company, Dine Brands, has also introduced dual-branded locations for Applebee’s and IHOP and is set to roll out 13 locations, many of them in non-traditional spaces.
Is a Non-Traditional Franchise Right for You?
Non-traditional franchise locations can help you break into high-traffic spaces without the sky-high rent. These alternative franchise setups offer some real potential if you play your cards right. That said, they’re not for everyone, and the tradeoffs are real.
If you’re exploring non-traditional opportunities or just want a second opinion, let’s talk. At Franzy, we’ll help you cut through the noise and figure out what fits your goals.
