The .srt format does not officially contain location information : it only contains raw text and timing for each subtitle.
However, there is an unofficial way to include these information in .srt file. Then, it is possible that a later version of Subs Factory includes it, but some video players might not accept that.
Subs Factory is not able to burn subtitles into a video - that would need a complete reencoding of the video, which is a heavy operation. To do such a thing, take a look at FFmpegX : this application is complicated to install, but should do the work. On top of that, it is a shareware. Another older application, D-Vision, should also be able to do that.
However, are you sure you must burn the subtitles in ? Using .srt files is accepted by a lot of video players, including TV boxes. Even YouTube allows to upload those files. They have the huge advantage to be deactivable at anytime, and to remain modifiable.