Should I consult with a commercial real estate agent when establishing an Endless Summer Sweets franchise?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
nitial investment.
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- Lease situations will vary in rental amounts, lease terms, amount of space required, tenant improvements required, security deposit and advance rental required. Location is a major factor in the amount of rent required. Base rent can vary significantly depending on the location and area. You should consult with a commercial real estate agent in your area These estimates may not cover advance rental deposits, insurance and similar expenses. Our estimates in this table assume you pay one month's rent plus a security deposit before you open for business. You may need to negotiate a "free rent" period for the time it takes to build out your business. This low estimate assumes a rent payment of one month at a base rent payment of approximately $2,917 and the high end assumes two months at a base rent payment of approximately $5,625 with the typical size of the space in the range of 1,000 to 1,500 square feet. We expect that you will rent your location. If you choose to purchase real estate instead of renting, your costs will be
Source: Item 7 — Estimated Initial Investment (FDD pages 10–14)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, it is advisable to consult with a commercial real estate agent in your area. The FDD explicitly states that location is a major factor in the amount of rent required for your Endless Summer Sweets location. Base rent can vary significantly depending on the location and area.
The document's estimates assume you will pay one month's rent plus a security deposit before opening. For example, the low estimate assumes a rent payment of one month at a base rent payment of approximately $2,917, while the high end assumes two months at a base rent payment of approximately $5,625. The typical size of the space is expected to be in the range of 1,000 to 1,500 square feet.
Engaging a commercial real estate agent can help you navigate these variables, negotiate favorable lease terms, and potentially secure a "free rent" period to offset build-out costs. While Endless Summer Sweets provides estimates, these may not cover all potential expenses like advance rental deposits and insurance. Therefore, a local expert's guidance is crucial in making informed decisions about your location and lease agreement.