Don't Let Your Lease Expire: A Crash Course for Franchise Owners

Alright, fellow restaurant and retail hustlers, let's dive into the leasing game. We've got to talk about the lease renewals, and trust me, it's a big deal. So, buckle up for some easily digestible wisdom on why you shouldn't let that lease slip through the cracks.

First things first, let's chat about the fallout of letting that lease expire without a plan. We're talking rent hikes that'll make your eyes water, the headache of relocating, and worst of all, watching your primo spot turn into the competitor's jackpot. Just ask Tim Doktorski, Controller for Team Wow, a Domino’s Pizza franchise with 70 locations. They missed a renewal, and poof – over $400,000 out the door.

Now, to make sure you don't end up in their shoes, here are three easy steps to lease renewal victory.

3 Best Practices To Ensure You Don't Miss a Lease Renewal

1. Document and Track Lease Terms

Maintain detailed records:

Start by keeping a rock-solid record of your lease terms. File away that initial agreement and every tweak it's gone through. Note down the nitty-gritty – the rent, how long you've got, renewal options, and any tricky conditions. Also, make a note of when you first signed, the key moments in between, and, of course, the expiration date.

Renewal options and terms:

And hey, don't forget to decode the renewal options in your lease. Some leases play nice with automatic renewals, while others want you to jump through hoops. Document any special conditions – like shooting out a notice within a certain timeframe or hitting performance goals.

Set up a reliable tracking system:

Once you’re beyond one or two locations, you need to create a system to track these dates. This lease management system should be your lease BFF, shooting you reminders well ahead of crucial dates. Keep it updated, too – you never know when the lease gods decide to throw in a plot twist. Leasecake is simple, easy to use lease management software, loved by users on G2, and starts at $6/month/location. 

2. Start Early

Initiate discussions in advance:

Lease renewal discussions can start up to 24 months before the lease expiration date, so make sure you start your conversations early. It's like giving your future self a high-five because early discussions mean more time to hash things out.

Negotiate terms and address concerns:

Use this head start to lay it all on the table with your landlord. Talk about any lease concerns you've been harboring and get ready to negotiate like a pro. And here's a pro tip: bring in the big guns, like real estate attorneys or commercial real estate brokers, to make sure you're playing your cards right. Check out these six negotiation tips to help you succeed. 

Explore alternative locations if necessary:

If things are looking dicey with your current landlord, starting early also gives you room to scope out other spots. That way, you're not stuck with no backup plan if renewing on your terms isn't in the cards.

Demonstrate commitment:

And, by getting the convo rolling early, you're showing your landlord you're in it for the long haul. That commitment goes a long way in sweetening the pot when it comes to negotiating those renewal terms.

3. Leverage Technology

Notifications: Timely Reminders

Lease management software is equipped with automated notification features, serving as a proactive tool for business owners. These features are customizable to send alerts for crucial dates, encompassing lease expiration, renewal option deadlines, and other pivotal events.

1. Advance Notifications: The software facilitates timely reminders well in advance of significant dates. This ensures that business owners and relevant stakeholders have ample time to initiate the renewal process, minimizing the risk of oversights.

2. Customizable Alerts: Users can tailor notification preferences based on their needs. Whether through email, SMS, or the software interface, this customization allows business owners to align the system with their preferred mode of communication.

Project Management: Methodical Planning

Whatever tool you are using, make sure you can  break down the lease renewal process into manageable tasks. These tasks range from conducting market research and negotiating terms to preparing necessary documentation.

1. Deadline Tracking: Track the progress of each task, ensuring that milestones are met on time. This systematic approach enhances efficiency and mitigates the likelihood of overlooking essential steps in the renewal process.

2. Collaborative Workflows: Project management features foster collaboration among team members involved in the lease renewal process. Assigning responsibilities, setting deadlines, and tracking progress become more streamlined, promoting a cohesive and organized approach.

Collaboration: Unified Decision-Making

It’s important to have a centralized approach that ensures that all stakeholders have access to the latest and most relevant details, reducing the chances of miscommunication or oversight. Lease management software can serve as a centralized hub for all lease-related information, functioning beyond a conventional file repository.

1. Real-time Updates: Collaborative platforms within the software allow for real-time updates and communication among team members. Whether discussing lease terms, negotiations, or challenges that may arise, everyone involved is kept informed.

2. Document Sharing: The software facilitates the seamless exchange of critical information by providing the ability to share and collaborate on documents. From lease agreements to market research reports, this centralized repository enhances collaboration and decision-making with efficiency and precision.

Armed with these three fundamental steps – documenting and tracking lease terms, starting early with proactive discussions, and leveraging cutting-edge technology – will help you ensure you never miss a lease renewal again. The fusion of proactive human engagement and technological prowess paves the way for confident and well-informed decisions, reinforcing the foundation of a thriving franchise amidst the dynamic landscape of commercial leasing. So, buckle up, stay vigilant, and let this knowledge empower you on the journey to lease renewal triumph.

Leasecake: Lease Management Made Easy

Leasecake is the industry-leading lease management software loved by users on G2, and starting at $6/month/location. If you’d like to learn more about how it can help you keep track of all your important dates, dollars and documents, contact us or visit leasecake.com.

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