Latest / Franchise Conversations with Fexingo: Buying, Running, and Scaling Franchise Businesses
The Real Estate Trap In Franchise Growth
Most franchisees think scaling is about operations, but the real bottleneck is often the landlord. We examine how lease structures—specifically percentage rent clauses and personal guarantees—turn successful multi-unit operators into trapped assets. Using a case study of a regional coffee chain expansion in the Midwest, we break down why signing that second or third location can actually destroy your net worth if you ignore the fine print in the commercial lease agreement. This episode covers the hidden costs of footprint expansion, negotiation tactics for better terms, and when to walk away…
The skinny
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