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What you need to know as a franchisee before signing a commercial lease

| Dec 6, 2020 | Commercial Leasing |

Becoming a franchisee can be a complicated process. It can be a costly one as well. One of the more expensive aspects of getting your business up and running is identifying and leasing commercial space. Finding the right place from which you can operate your business can be a long and tedious endeavor. That’s why you’ll want to begin as soon as a franchiser approves your franchise agreement in case your first choice doesn’t initially work out.

Don’t depend on a commercial realtor to help you negotiate the lease

If you think that you’re going to reach out to a commercial realtor and that they’re going to guide you through the entire lease process, then think again. While their knowledge about the existence of current desirable properties or ones that will soon be listed can help you in your search, they may be of little help to you in the negotiation process once you identify one you like.

While most realtors receive negotiation training, it primarily focuses on how to broker residential real estate deals. This industry is heavily regulated, and negotiations follow a predictable pattern. Commercial real estate is much different.

The onus falls almost entirely on business owners’ shoulders to look out for their best interests when negotiating a lease. Commercial lessees do gain an ability to customize their rental agreement terms to their preferences because of this, though. You may find it helpful to have a lawyer involved to not only help you negotiate your lease but to make sure that the terms of your final agreement are in your best interests.

You and your prospective landlord have differing interests

Landlords are in the business of making money. Their main objective during negotiations will therefore be to include terms in the lease that maximize their profits.

Your goal as a lessee is the complete opposite of a landlord’s. You want to keep your expenditures to a minimum.

Negotiation is a give and take approach whereby both you and your prospective Florida landlord will have to be flexible as far your demands are concerned to come to a mutually beneficial arrangement. An experienced attorney can help you negotiate with your future landlord once you locate the ideal site for your business.

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