Now that the franchise contract is signed, a lot of things will start happing and the two most important for now are site selection and preparing for training. Let’s start with site selection.
Site selection is an art unto itself and I won’t try to explain the entire process here, but if you don’t have any experience in this area, that’s OK. Most franchisors provide plenty of assistance. They can’t very well expect to grow if they don’t. They’ll show you how to find a local commercial real estate agent, give you a list of site criteria, and guide you through the entire process.
I mentioned earlier that I’d found a site I like. I’ve contacted the landlord’s agent and scheduled to meet her at the site and look it over. And I sent the site info to the franchisor to see what they thought – they said it fit their criteria perfectly. I met with the agent, got the rent and other vitals and started working on a Letter of Intent (LOI). In my LOI I offered what I thought was a fair rent rate and suggested a few terms that would help me get off to a good start. I don’t mean to skip through this too fast but, again, the franchisor is going to be taking the lead most of the time. I’ve done it many times in a past life so, if you haven’t, rely on the franchisor for help – the lease has more liability than any document you’ll sign.
But I have to make sure I’m not overlooking anything in other areas of town. Based on the way Tucson is laid out, there are three primary areas I’d consider for a store – northwest, central and east. My current pick is central and the east side is my last pick for a store – simply not as concentrated shopping areas as the other two – so I took a drive on the northwest to see what I could find. There was only one site that was on par with my first one, but it was twice the price. Strikeout. Nothing else even came close so I’ll see if I can wrap up the deal on the original site.
After a few exchanges with the agent, we’ve come to terms. In fact I think I got a pretty good deal. The lease is coming over today and I’ll start reviewing it right away. I really suggest you use an experienced real estate attorney for this and I can recommend several to you should you ever need it.
Once the lease is signed, I’ll head to Tampa for training at Big Frog’s corporate headquarters. In the meantime, I’m already feeling the extra workload this has added to my brokerage business. Business is good, I’m not complaining – I’ll just have to deal with it. More later.
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