Leasing to Franchisors
- Thread starter asdf
- Start date
i have 2 leases out to food franchisors and tried to negotiate with a third but didn't even get to Heads of Agreement. It can be quite a painful process to be perfectly honest.
They'll throw the "it's a standard practice for us" line at you where ever they can to justify some of the things they'll throw at you.
They'll throw the "it's a standard practice for us" line at you where ever they can to justify some of the things they'll throw at you.
I'm on the other side in that I have owned retail business' and franchises.
My franchisor, and I assume most others engage the help of a professional leasing agent to negotiate on their behalf. I know the guy that looks after ours ( or is supposed to) also looks after Bakers Delight and one other franchise that I forget atm.
Thats his fulltime job, he also sources new sites for franchises. Its a bit of a boys club, AMP, QIC, Lendlease, Stocklands, all the leasing guys know each other and the leasing agents.
My franchisor, and I assume most others engage the help of a professional leasing agent to negotiate on their behalf. I know the guy that looks after ours ( or is supposed to) also looks after Bakers Delight and one other franchise that I forget atm.
Thats his fulltime job, he also sources new sites for franchises. Its a bit of a boys club, AMP, QIC, Lendlease, Stocklands, all the leasing guys know each other and the leasing agents.
Just got the offer from PM at head office and I almost laughed at the lessor's obligations. Guy hasn't even stepped onto the premises being in the opposite part of the state. Will be going back and telling them they can do whatever they want to it, as long as I'm not paying for a cent. Why do I care its a 5+5 to a supposed blue chip tenant? Sometimes they do harp on about that. Spoke to the potential franchisee (who already runs another shop a few suburbs away) a couple of weeks back who informed me that hes taken a long while to find something suitable so I think I'll play the "take it or leave it" card and if they don't want it, will offer it to a Chinese Restaurant or something similar seeing the previous tenant hasn't removed all his kitchen fittings. Hoping a new tenant will take it over. What would you rent a regional 150m2 (100m2 useable, rest storage rooms) commercial shop for?
How longs a piece of string?
In a major shopping center in Western Sydney I was paying $110k for 45m2 2 years ago, The have since doubled the size of the shopping center and wanted $180k for 90m2.
My other business is in a local shopping center anchored by Woolworths, Coles and Aldi and I'm paying $75k for 102m2
Both of these are in shopping centers, I dare say your best bet is to ask the local commercial agents.
Very true. Rents have really gone through the roof haven't they? I don't know small businesses are supposed to make any money when they go into these centres. Did you have to pay a lot of the landlord's outgoings too? Land taxes, rates, PM fees, insurances?
