Weekly Tips - Lease Negotiations - Location
Leasing Strategies – Location, location, location
There are challenges multi-unit franchisees face in site selection and leasing no matter what kind of market exists. Lease negotiations is an important constant for franchise growth and longevity. Identifying specific issues early in the process can provide powerful leverage to help establish and sustain success.
Earlier this year we interviewed several multi-unit franchisees and got their advice and best practices for site selection and lease negotiations. Here’s what one of them told us about the importance of location.
Location always matters
When Bryce Bares opened Nebraska’s first Dunkin’ Donuts in 2013, the real estate market was still reeling from the recession. “It was definitely a buyer’s market, and we were able to acquire some great locations for good prices,” he remembers. “Now we’re facing the reverse situation: it is very difficult to find prime locations for a good price.”
For Bares, who operates 12 Dunkin’ stores in Nebraska and Kansas, convenience and accessibility for his customers still top his must-have list when shopping for a new location.
“The challenge is that all of our competitors are looking for the same thing, so we end up competing for prime locations, which also drives costs up,” says Bares, who practiced real estate and employment law before turning to franchising.
Fundamentally, locations should meet all the franchisor’s site evaluation criteria. Use that information as a starting point and don’t settle on a location for the wrong reasons.
“The number-one mistake I’ve seen franchisees make is to be lured to bad locations by a low price,” says Bares.
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