Lease negotiations within the restaurant space.

by a searcher from Montclair State University - School of Business

1 month ago

What is your experience with negotiating leasing terms? I ran into a deal with a 3% increase every year. I believe, eventually this will eat away are the profits of the company. The business I'm looking at is a restaurant and I don't think the sales can have the same growth YoY. Also, has anyone had a luck removing personal guarantees from leases? Are they just the standard when leasing?

0 likes
22 views
5 comments

searcher from Montclair State University - School of Business

Yes it seems like these type of set ups are common place for restaurants.

1 month ago | like reply | 0 likes

intermediary from California State University, Northridge

Agreed with the comments above. I'd add that if you can, shoot for 10% increases every 5 years or even 2% annually instead of 3. Not clear from the post if this will be a new lease or an already existing lease

1 month ago | like reply | 1 like

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Sorry, but you are a broker's worst nightmare ... and how to fix it

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.