Thread: Renting to a franchise
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Nov 16th, 2008 05:33 PM
#1
Renting to a franchise
I have retail space for rent and a franchise has come a-calling. They've made an offer to rent but the terms work out to giving them basically a year's worth of rent free with all the conditions they've put in.
I've heard that getting a franchise as a tenant is a good thing (long lease, usually stable) and that one should 'sweeten the pot' as it were by making some concessions - but how many concessions are reasonable and when does it just become stupid? I'm thinking that concessions that amount to a year's worth of rent is beyond the resonable test but I don't know enough about any of this.
Anyone with some thoughts?
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Nov 16th, 2008 06:58 PM
#2
We had a mega wraps franchise in our office building. Owners disappeared, evicted for non-payment of rent. Quzinos in building closed after 3 years. Now, you must consider also that commercial leasing allows for a rather fast eviction process. The Swiss Chalet has been there for over 20 years though.
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