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Special Report
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© Bill Main & Associates
A well-executed lease is an important asset. It offers protection when problems arise, and adds value when you decide to sell your business. Unfortunately, most operators don't know what makes a good lease, and the typical realtor knows even less. When renewing, assuming, or negotiating a lease, review these key points before you sign on the dotted line:
Partnership
Landlords and developers are not the enemy. They are risk takers, providing
"patient" capital for up to 20 years, and sometimes longer. They also
understand the riskŠreward dimension of a lease and expect to share in
a restaurant's financial success. A lease is a joint-venture partnership
and should be approached accordingly.
Leading
Attractions
A successful restaurant lends high public visibility to real estate, greatly
enhancing property values. City planners and lenders are beginning to
realize that an economically viable office complex, shopping center, or
industrial park must feature a certain amount of space designed solely
for foodservice. It's common sense and sound business. Use this leverage
to your advantage.
Caveat
Emptor
You should read and thoroughly understand every clause, paragraph, footnote,
annex, and provision contained in the lease. Your lease can be your most
valuable asset, and it may be your salvation. And many times, it's all
you've got to sell.
Caveat
Lessor
A successful restaurant-lease negotiation means having an appreciation
of the risk from your landlord's perspective. But never apologize for
the presence of risk--it's the driving force behind any business negotiation.
Fly
With The Pros
An affordable lease is the cornerstone of a profitable restaurant. You
should consider having a professional restaurant consultant or other professional
with restaurant lease experience represent your interests in any negotiations.
When buying a restaurant and assuming an existing lease, experts can save
you big dollars and heartache down the road by bringing issues to light
that demonstrate that the deal may not be economically viable.
Finally, you must have the ultimate
control; a consultant or attorney is the navigator, but you are the pilot.
The more guidance, direction, and insight you and other experts can offer,
the more favorable your final lease will be.
For Trade Secrets Members, we've attached our complete 10-page Special
Report
on Restaurant Leases. It is a great tools to share with an accountant
or real estate agent who is helping you negotiate your lease.
For non-members,
the Special Report is available for $10 in
our on-line catalog. Log onto
http://store.yahoo.com/tradesecrets/