Franchisor lease management is more than a collection of legal agreements. When it comes to growing your franchise, lease management is the true foundation of your concerted effort. A poorly negotiated lease can stagger an asset with unexpected costs and rigid, unattractive terms. When properly negotiated your asset becomes a powerful tool for profitability. As your franchise expands, which approach would you rather build upon?
Strategic Points for Franchisor Lease ManagementÂ
Expanding your business is always a risk. Yes, the challenges can be rewarding but when it comes to understanding lease management strategies for franchisors you will likely find that those challenges stem from well-intended but poorly constructed lease agreements. The lessons learned can be trying, so here are some lease management strategies for growing franchise networks.
First, be sure to stick with familiar lease terms and templates. If the basics are mastered and firmly implemented then your foundation has solid footing. Practice flexibility when it comes to rental, renewal and termination options. Also, be transparent with rent escalation clauses. It’s an easier pill to swallow if a tenant sees it coming and understands why.
Your franchisor lease management strategy should also include quick and easy access to your team. Maintaining an open channel of communication is essential when it comes to making sure both you and your tenants are aware of issues, deadlines and opportunities.
You should also subject your franchisor lease management team to routine training. As the tech in the CRE industry continues to expand, so does the impressive array of platform options. Make sure that your team is not caught flat-footed by using outdated modes or techniques. A well-trained management team can operate more efficiently by making more informed decisions based on tenant opportunities and behavioral patterns.
Branch Out but Stay Focused
Successful franchisors understand the risks when it comes to expanding too quickly and without a centralized plan or platform. The adoption of a centralized platform will enable franchisors to properly track and audit all leases across a single or multiple networks.
This means that you will have access to critical functions such as rental and renewal deadline alerts, document storage and retrieval as well as lease abstraction, data analytics and a payment integration system. When your platform is centralized your franchisor lease management strategies are more confined and easier to apply and sustain.
Lease Management Strategies for Franchisors Just Got Easier
Whether a franchise or a chain, your lease management software will need to scale with your business. If you’re looking for a strategic advantage in the CRE marketplace, then your focus should be on building your franchise on top of an unshakable foundation. Let us show you how our cloud-based lease-management software can reduce risk while improving efficiency and profitability. Reach out today and ask about our industry-leading software. Your free demo is also just a click or call away.
