Franchise Store leases. Address these issues right away

There are many important aspects to leases that you need to get right at the beginning; while not all landlords are willing to listen and accommodate, if you do not ask the right questions and for the right terms, you will get the terms mostly in favor of the landlord and you will suffer the consequences for years to come. You must address these issues before signing on the dotted line and know what you are getting into. The number of times I hear the phrase " I did not know I signed for that" is startling. Issues ranging from higher property taxes passed on in CAM charges, to assignment and release, occupancy rate changes, and options to renew and more. So read this as a mind exerciser.

• options are at market rate with minimums, making the location potentially less viable at the time options are exercised
• 20 year franchise term, 15 year lease, no options
• no defined exclusivity for your product or service in the center
• inadequate parking
• loss of a major anchor tenant or loss of multiple tenants, without compensating and corresponding occupancy cost relief
• no cap on rent and CAM charges
• inadequate tenant improvement allowances, or periodic remodel allowances
• incompatible neighbors, nuisance tenants
• no kick out clause if things do not work out
• parking lot lighting issues, employee parking
• inadequate signage

This is only a partial list. There are many more terms franchisees need to be aware of.

You must have a leasing expert working with you on these very important matters. A good source would be Mark Leonard at yourfranchisementor.com - he has seen his share of bad leases and has managed to help many before signing. And he can explain terms you may not be familiar with.

Contact me for more information on this important topic and submit your questions.