With rents rising, it’s more important than ever for franchisees to negotiate a good deal.
The “tenant’s market” franchisees have been enjoying over the past few years is coming to an end.
A recent article from Franchise Times highlighted how during the Great Recession, many business owners had their pick of the real estate litter. However, as businesses have continued to expand, new construction has not kept pace.
You don’t have to be an expert in economics to see how supply and demand is changing the real estate landscape, especially where rents are concerned. Of course, geographic location is also playing a role.
“The rents really depend on where you are,” Robert Maynard, CEO and co-founder of Famous Toastery, told the source.
Maynard pointed out that rents are totally different for Famous Toastery franchises in North and South Carolina.
“But landlords are feeling stronger these days, and they are flexing their muscles,” he continued.
So what can franchisees do to protect their investments in a changing marketplace? Don’t go into a lease negotiation unprepared!
Franchise Times outlined 10 tips for succeeding at the negotiating table, with No. 1 being procuring the services of a good broker. The source maintained that since real estate brokers understand how the market is performing due to recent trends, they can help clients determine what factors are influencing landlords – valuable information when trying to get a leg up.
Check out the rest of the tips here.