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Franchisees, Landlords, And Root Canals; Negotiating A Lease For Your Franchise Location

You did it! You've invested in a franchise business of your own. You're all set up to go to your franchisors headquarters for training. Before you know it, your small business loan payments will be due.

(This post may contain affiliate links. Please read my disclosure policy).


I know that your ready to open a franchiseyour franchise! There's still one thing missing, however…..

Your location! Where the heck are you going to open for business? And how do you negotiate a lease with a commercial real estate agent?

You've undoubtedly put hundreds of miles on your car, doing some preliminary checking for possible sites for your new business. (Actually, you've been totally obsessed with finding that perfect location, and everybody around you is sick of hearing that you've "found it," over and over again)

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Franchise headquarters has assigned a real estate professional to work with you, to help you secure a prime spot.

Just when it seems that you'll never "find it", you do. Now the real fun begins. I'm talking root canal kind of fun. Are you feeling it? Heck, let's go with multiple root canals, because you're about to embark on a commercial leasing adventure that you never anticipated you'd be taking…

Root canal

I'll wager that you really want to read the rest of this post now, right?

Dealing with the landlord, or his or her representative, isn't as bad as I just made it out to be. (I'll admit it. I was being selfish. I was having fun with the root canal analogy, and it made a great blog headline.)

Recently, I wrote about some great reasons to buy a franchise. Well, I'm adding to it now;

  • The franchisor, in most cases, helps you find a location for your new business, and even assists you with lease negotiations. (They probably won't actually negotiate your lease, but they'll certainly help you with specific information that you'll need to negotiate with the landlord.)

* Working with a great franchisor that helps you through the pleasantries of commercial site location, is akin to receiving oodles of Novacaine during a double root canal, while getting a neck massage from a highly-skilled masseuse of your choosing, and getting a cash refund when you leave your Dentist's office!

The franchisor has probably been through this several times, so they know what you should be looking for in a lease, and should be able to help you with some fine-tuning.

Since you've probably never leased a commercial office or retail space before, there is lots of room for negotiation. (Not just on the monthly rent.)


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A writer over at OPEN Forum By American Express just wrote a fantastic, fact-filled article that describes the commercial lease negotiation process is detail;

"On the surface, it may not seem that renting office space offers a lot of room for negotiation. You look for rentals in your price range, tour the property with the landlord or manager, and sign a lease for the amount advertised."

The writer, Thursday Bram, goes on to say that "The truth, though, is that even if you're talking to a management company that can't negotiate on price, there are many opportunities to make your lease a more equitable contract. From exactly what expenses your rent covers to how far the landlord will go to prepare the unit for you, you have an opportunity to negotiate each step of the lease."

I'll just bet that you'd like to know what else you can negotiate in this quest for the perfect space for your new business. If you read the rest of the story over at Open Forum, you'll find out. Good luck!

You need to find out exactly what the franchisor that you're thinking of partnering with does with regards to helping you find a great location. Of course, important information like that is included in my eBook.

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Click the eBook cover. It won't hurt.

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Note: When you buy through links on our site, we may earn an affiliate commission. In addition, I've started to use AI to help me craft better article titles and headings.
joel libava

I'm The Franchise King®, Joel Libava. I help prospective franchise owners avoid bank account emptying mistakes. For over 20 years, I’ve been helping people make smart, informed decisions on franchises to buy, and I can help you, too! #thefranchiseking
“The fantastic thing about Joel is his neutrality. Because he is not getting an incentive fee, he will always give you the advice that you need (even if not what you necessarily want) and that's pretty unique these days. Thank you Joel!"
- Nic Church, France
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