Quick Answer: For franchise locations, the best default is a subfolder strategy on the main domain because it consolidates authority, accelerates local page indexing, and avoids splitting backlinks, brand signals, and crawl budget across separate hostnames. Use subdomains only when a location needs a distinct technical stack, independent content governance, or operational separation that cannot be managed within a shared CMS and URL architecture.
From an SEO and digital operations standpoint, subfolders usually outperform subdomains for franchise location pages because they inherit the strength of the primary domain, making it easier to rank local landing pages faster and maintain a unified internal linking structure. A subfolder model also simplifies analytics, conversion tracking, schema implementation, and centralized content updates across all locations, which is critical for franchise systems that need consistent branding and scalable local optimization. Subdomains can still be strategically appropriate when locations function like separate businesses, require different templates or applications, or must be isolated for legal, technical, or organizational reasons—but in most franchise environments, that separation creates unnecessary fragmentation of authority and management overhead.