Skip to content
Connect

Real Estate Advisement: the Setup for Success

Picture of Cara O

Picture this: you've gone through the training, all the new Franchisee paperwork is approved - now it is time to find a site for your new Franchise Business! While you may feel overwhelmed, a trio of resources can ease your worries and help you find your dream location. A Real Estate Broker will ensure the site analytics work for you, a Construction Management team will see if it can be built within budget and brand standards, and your Legal Team will represent your best interests.

By utilizing this trifecta team, you will be set up for success!

Real Estate Advisement-01

Real Estate Broker 

A qualified Real Estate Broker will be the first step in your search for your dream location. A broker will perform an in-depth site analysis to see if the location can support your concept. Your Corporate team may have some standards in place in a Site Approval Package and a preferred (or internal) broker for you to utilize. If not, we have a few vetted sources to get your search going.

 

Data Points-01Site Analysis: 

    • Signage: What is existing that can be repurposed? Will the site support your brand standards?  
    • All forms of traffic – car, pedestrian, and public transportation. These will play a different role, especially coupled with your target demographics. Do you have a lot of college students who may walk to your spot? Is a major bus line nearby? Can customers easily and safely access your location?
    • Complimentary neighboring concepts: Whom would your ideal neighbors be? If you are a gym, it may be a smoothie bar or an athletic wear store.  
    • What neighboring concepts/competition would be a deal-breaker? If you are a coffee concept, you probably don’t want a Starbucks across the street! While you can’t necessarily choose your neighbors, there are most likely a few deal-breakers.
    • Future growth plans for the area: Will this location continue to serve your needs as it develops?

 


 

Construction Feasibility 

So you have a site or two that passed the Site Analysis stage – congratulations! Before you sign anything, it’s time to make sure you can build your concept in the space - while keeping your budget in check. Time to reach out to your Construction Management team! You may think that it is a little early for this, but a qualified CM team will be delighted if you reach out early! That way, they can help you with: 

  • A Site Survey to determine if the space can support your concept – learn more about Site Surveys here! 
  • Cost estimates of modifications – brokers and corporate may have an instinct that something ‘can’ be done... but not know the details, or cost, of how the construction will unfold.  
        • Unfortunately, we have seen this first hand: a client moved forward with a location that required what they thought were simple modifications to fit their concept. What they didn't know: this small change required structural modifications that cost exponentially more than the non-construction team estimated when they approved it. Small change does not always equal a small cost! 
  • If you are worried about incurring construction management costs too early, a good, reputable team will happily transfer their contract to another location if one doesn’t work out. After all – finding out these potential troubles early on makes their job easier too!  

Once the CM team has completed the site survey, there will probably be a few things they recommend working into your Letter of Intent to best work for your concept – making the construction process as smooth as it can be.  

 

Legal Icon-01Legal Team 

  • So you have your site, you know what needs to be modified! Your CM team helped work it into your LOI, giving you the confidence to move forward! What's next?  
  • Honestly – not us. Time to get your legal team involved! A legal team with commercial lease experience will catch some details that you will probably want to be clarified. Go over it together and ask questions so you can sign with confidence!  
  • This point is simple, yet so important as you move forward into construction. A few misinterpreted words could end up costing you thousands. 

 

Conclusion

To set yourself up for success, invest the time and resources into finding the ideal combination of location, site analytics, and lease arrangement!  You'll have a smoother construction process, a clear understanding of your lease, and the location to support your new business.  You definitely won't regret it! 
, , , ,