Lease negotiations within the restaurant space.

by a searcher from Montclair State University - School of Business

8 months 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?

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5 comments

searcher from Montclair State University - School of Business

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

8 months 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

8 months ago | like reply | 1 like

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