Multi-Unit Real Estate & Site Selection Advice - Use a Broker or Not?
Earlier this year, contributing writer Sara Wykes interviewed several multi-unit franchise operators about how they handle site selection and real estate challenges in today's market. She spoke with a number of operators who talked about finding that perfect franchise location, one that augments the odds of success and reduces the risk of failure.
Here are some insights culled from her interviews:
Broker or No Broker?
Jake Alleman, multi-unit operator of Broken Egg Café and Chicken Salad Chick restaurants, believes brokers are important when considering new properties--especially if there's an effective collaboration between types of brokers.
"Local brokers can bring value by having local knowledge and connections in their community," Alleman says. "A lot of times they know of a site that may be available prior to being listed on the market. It also helps with negotiating the Letter of Intent because they know a lot of the landlords in the area and may have had negotiations with them in the past. They know the market, and what the location is worth."
Alleman also likes having someone else's expertise working for him. Brokers, he says, "help tremendously with time. It is very time consuming with so many emails and phone calls going back and forth. Having a broker allows me to continue focusing on running my business." And he likes having the negotiating savvy an experienced real estate attorney can offer--one that has negotiated restaurant/retail leases successfully is critical, he says.
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