Every commercial landlord wants national franchises and chain stores for tenants. They have name recognition and a proven track record in business. So when it comes to expanding your own operations and negotiating further leases, lead with your strengths. If you are opening a franchise location, you are automatically more desirable to a landlord. If you are opening your third, fifth, or tenth franchise location, you are even more attractive because you are proven successful! Here are three strategies to implement in your lease negotiations.
Unfortunately, too many franchisees can't, won't, or don't toot their own horn. I recently negotiated a lease in a major shopping center for a multi-unit franchisee. He told me that his newest location was ranked fourth-highest in sales in all of North America and that he had been awarded rights to open more units in other cities. Do you think this information would help me get the attention of other developers for prime mall sites? Of course! I often send in a video crew to film store grand openings and upload the recorded footage to YouTube. This way, I can easily show off the franchisee's locations to multiple landlords who might have properties in a city but whose head office is located elsewhere.
When I attend or speak at multi-unit franchise conferences, I frequently hear the same story: franchisors want to help their franchisees with new locations. Some of them indeed do, but many simply do not have the resources or staff to provide sufficient real estate help. This leaves the multi-unit franchisee to make the mistake of personally mishandling the lease negotiations and chalking this up to being the only alternative. When was the last time you cut your own hair or built your own furniture? Don't be afraid to also ask for help with commercial leasing.
Do you have a leasing question? E-mail me and ask for a free leasing CD.
Dale Willerton is The Lease Coach and a Senior Commercial Lease Consultant who works exclusively for tenants. He is a professional speaker and author of Negotiate Your Franchise Lease or Renewal. Have a leasing question or need help with your new lease or renewal? Email me for a free leasing CD. Want TheÂ Lease Coach to speak at your next franchise convention? Contact me at 800-738-9202 or email@example.com, or visit www.theleasecoach.com.
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