One of the most important support services a franchise provides for its franchise owners is site location and lease negotiation. Franchise owners are seldom armed with the necessary information to go up against a landlord that's been in business for years. Landlords like many professions talk their own language. Monthly rent is often quoted per square foot on the location per year and in high rent districts rent is per square foot per month. So one thousand square feet at one thousand dollars per month would be quoted as twelve dollars per square foot per year or in high rent districts or one dollar per square foot per month So all three rental quotes would be for the same dollar amount.
Usually the franchise company will fly out their real estate specialist to conduct the location survey. Sometimes a franchise company will use a local realtor who specializes in commercial real estate.
Generally a location is graded on its surrounding demographics, the size and compatibility of neighboring tenants, and the visibility the storefront has to the street. Also considered are the vehicle traffic counts driving by the shopping center each day. The real estate specialist also will look at how difficult it is to get into and out of the shopping center. This is known as egress and ingress. Is there adequate parking both for the employees as well as the customers?
The rent is based on a base rent plus a percentage of sales based on the business industry. Plus in commercial rent is common for the tenants to pay maintenance, taxes and management fees. This is commonly known as "triple net rent".
We have listed the top ten franchises four two thousand and eleven based on their sales and other financial performance numbers. But each of these companies offer complete real estate support for the franchise owners.
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