Picture this: you've gone through the training, all the new Franchisee paperwork is approved - now...
So, you want to build your franchise using Ground Up Construction.
What an exciting and wonderful idea for your business! You think you found the perfect site, it is in a great location, and the landlord hands you a lease and a pen.
Not so fast!
While utilizing ground-up construction for your build can be incredibly rewarding; starting from scratch may leave you vulnerable to potential construction site issues that lurk under the surface.
Is it a pad site? The bare minimum for utilities may await you underground, far away from your future curb line. Don’t know the history? It may have outdated utilities that will not pass current inspections... or worse, contaminated soil. No matter what awaits you underground, it’s always best to do your research and get a quality site survey before signing anything. This will give you the information you need to negotiate the required improvements into your lease, so the site is ready for your concept!
In this post we will touch on common issues in ground-up construction, and what to negotiate into your lease.
Utilities
Water
Did you know there are different types of water delivery systems targeted for different industries? Depending on your business needs, namely, if you are in the food and drink business, you’ll have different standards to uphold.
Look out for:
- Water quality
- Water supply/location
- Upholds standards set by Corporate and local jurisdiction
Sewer
If you have a new site; the bare minimums may be in place from the initial utility implementation. If you have an older
site, they may be outdated – and sewer pipes typically do not age with grace. If you are the first restaurant in your space; the lines may need to be reworked to accommodate for your grease waste.
Look out for:
- Location (bring to curb line of the building)
- Proper backflow
- Ability to tie in systems (grease, etc.)
- Quality is up to date - will uphold lease duration
Electric
Does your concept require a lot of electricity? Ovens, large refrigerators, demanding equipment, etc.? The standard electrical requirements may not work for you! This can be negotiated into your Tenant Improvements to make sure you have enough power to support the requirements of your concept.
Look out for:
- Location (bring to curb line of the building)
- Amp/wattage in line with concept requirements
- Phase of power
Site History
It's no secret that environmental standards weren't always the best. It's always best to perform some serious due diligence on your site to make sure you aren't walking into a Brownfield site. Ask questions and research before you get too invested!
Summary
Ground-up Construction can be a truly rewarding way to start your own franchise business, but it requires a lot of planning and due diligence to do it well! Start your build off on the right foot(ing) and make your site and lease work for you.
