a New S
ease
L on ife
L
T ips for S tructuring
a C ontract to B oost
Y our B ottom L ine
24
o you want to open a new club? You
could build from the ground-up,
opt for a build-to-suit or buy out an
existing location and retrofit it for your needs.
For many franchisees, however, leasing space
provides the most viable option.
But it’s not as simple as making up your
mind to lease and popping up in a market.
by Christina Cannon
Waiting for the right space and appropri-
ately negotiating a lease often takes months
and sometimes years. In PF Miami Developers franchisee David
Bidwell’s case, once he set his sights on the Lodi, California, market
he was able to find a site within six months of signing the ADA.
For Chris Cavolo, it took three years and a lot of patience to get in
to the sought-after Tullahoma, Tennessee, market.
Regardless of how long it takes owners to get situated in a
market, they all agree on one thing: The art of leasing deals starts
with the people who know the market best – brokers.
“In some of these markets, it kind of gets to be this thing
where we have to be so active in looking for places that we can’t
let them get listed,” said Cavolo. “If these open spots get listed,
they go, and we’re not going to get into them then. The rent gets
elevated and gets out of our league.”
The best way to combat that issue, suggested Cavolo, is to