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How Top Franchisees Use Subleasing to Lower Rent
Franchise expert Lucas and co-host Luna dive into an underused strategy for cutting occupancy costs: subleasing excess space. Using the example of a multi-unit sandwich franchisee in Chicago, Lucas explains how leasing 25 percent more square footage than needed and subleasing the remainder to a complementary business like a smoothie chain can reduce effective rent by 30 percent or more. The episode covers lease clauses to negotiate upfront, how to find compatible subtenants, and the tax implications of rental income vs. royalty calculations. Luna pushes back on the risks, including landlord…
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