Securing a commercial lease — office, retail or industrial space — is a complicated process that requires much time and effort. As a business owner, there are several different types of property owners you may encounter in your initial search and even during your occupancy, ranging from small individual owners to multi-rand dollar real estate investment trusts.
Working efficiently with each kind of owner requires a basic understanding of their preferences and priorities.
Here are the few key characteristics of each group:
1Mom and Pops
Mom and pops are owners with smaller portfolios who obtained property as a primary investment. They are not as formal in business practices as other types of owners. Often personally vested in their space, they favour tenants who will treat their space well.
- Usually straightforward and easy to deal with
- Great for those who desire a close landlord/tenant relationship
- May be flexible on terms for the right tenant
- Best fit for smaller businesses with simple needs.
- Communicate with a personable and warm manner
- Highlight what makes you a good tenant
- Convey your willingness to take ownership of the space
- Share creative ideas on how your business can indirectly benefit them.
Unlike Mom and Pops, family investors are ‘real estate families’ who have amassed a sizable portfolio over tens or even hundreds of years. The tenant/owner relationship may not be as intimate but nonetheless, family owners are still materially involved in the leasing and management of their properties.
- Still operate with a personal touch and often handle leasing in-house
- Generally cash flow driven; prefer stable tenants over the highest possible rent
- Have intimate knowledge of every building in their portfolio
- Tend to have long-term tenants that they have accommodated over many lease periods
- Best fit for small to mid-size businesses who are looking for a landlord that is willing to build space and accommodate their short-term growth needs.
- Check out other buildings within their portfolio to get a better sense of what they have to offer
- Be warm and personable because it’s not only the bottom line that drives these owners
- Clearly communicate your needs and limitations; they will do the best they can to accommodate
- Be prepared to put down a significant security deposit if you don’t have strong financials.
Related: Location, Location, Location!
While technically not an owner, management companies act on behalf of the owners that hire them. For the purposes of leasing and day-to-day property management, they are the de facto owners. Management companies typically have access to a large portfolio of properties with a variety of options to fit any business needs.
- Very knowledgeable and can accommodate a wide range of needs
- Allocated budgets for building improvements and capex
- Offer standardised and less flexible lease terms, especially for smaller tenants
- Best fit for businesses that have established credit, as these owners often have specific requirements and operating rules.
- Expect to sign a five-year lease
- If you are a high profile tenant who’s well recognised or generating a lot of buzz, use this to your advantage, as these landlords like having notable tenants in their roster.
4Real estate developers
As the name suggests, real estate developers develop and acquire office, residential, hotel, retail and mixed-use properties. The properties they construct are typically Class A buildings designed by award winning architectural firms and feature some of the best amenities offered by any landlord.
- Extremely well maintained common areas and large lobbies with strong security
- Looking to capitalise on the quality of their buildings and generate the highest rents in order to maximise property value
- Often limited to major markets/cities
- Usually more than willing to build space for long-term tenants or provide a significant tenant improvement allowance
- Best fit for companies looking for premium space.
- Plan well in advance as deals can take a long time to close
- Ask for specific details and changes to the space that will help your business
- Use time as a negotiating factor; many new buildings need to secure tenants even before new buildings are completed.
Related: Choosing the Right Location
Institutional investors are money managers who invest in various asset classes, including commercial real estate. Of these investors, real estate investment trusts invest solely in real estate properties but most funds will also invest in properly as part of a diversified portfolio.
- Most assets are Class B+ to Class A buildings that generate strong cash flows for investors
- Driven by occupancy rates and margins, not personal preference.
You are unlikely to deal directly with these owners unless there’s a major dispute, you’re an anchor tenant and/or a large tenant improvement (TI) allowance is involved. If you do, make sure you sweat the details. These are not your typical landlords, so make sure all of the right paperwork and documentation is in order.
This article was originally posted here on Entrepreneur.com.
The Digital Headaches Of A Franchise Marketing Team
Here are my top 5 tools that can help control and regulate franchisees marketing with minimum friction.
Franchise marketing teams already know that managing campaigns for a business with multiple locations and/or stores is a time-consuming job.
When it comes to online marketing, many franchisees are frustrated with the mother brands’ national campaign strategy, as it may not suit their immediate needs. This often means they embark down the dangerous route of “rogue” or unapproved campaigns.
This is a huge risk for any brand as there is limited to no control over the message and quality of creative, often resulting in brand CI and best practices not being followed.
Rogue advertising can be totally avoided by a franchises’ marketing team by employing tools that allow them to set up a managed process where franchisees can advertise through. With a managed approval process (preferably automated) it is easier to manage “rouge” content.
Here are my top 5 tools that can help control and regulate franchisees marketing with minimum friction.
1. Create a consistent Facebook content experience whilst still allowing your franchisees to post to their own page
Facebook location pages makes it possible to, as an alternative, allow every store to open a Facebook page, each with different versions of your logo as their profile picture, as well as incomplete profile data or even old or past promotions as their cover image. You as a brand manager can set up each store as a location page on the brand’s main FB page.
The pages can all be linked to the main page and if you change the profile image or cover art, it will automatically update all the other pages. There are also a number of other marketing advantages to this, but most importantly for me was the ability to manage them all from a single interface and clean up all the old and abandoned pages that just confused customers.
2. Manage social media content
Gain is extremely simple to use and connected to all the popular social media platforms such as Facebook, Twitter, LinkedIn etc. As a user, you can create posts or ads and schedule them all from the same window. Once said posts are scheduled, the marketing team can preview the content and approve it for publication or request changes all within a matter of seconds. Best of all, nothing will get posted without your approval.
3. Free professional looking content in a template
Pablo is an old favourite of mine! It supplies predefined size templates where a user can use free professional stock photos and quickly overlay text. The feature I love most on this tool is the “insert logo” feature, which with the click of a button can overlay a banner or brand element that creates consistent content experiences. Once done, you can export the image and post it to gain for approval. Simple right!
4. Create email alerts for when your brand is found online
Talk Walker alerts is a nifty tool and acts like your personal internet detective who constantly crawls the internet for keywords that you define. I like to use my clients’ brand names and sometimes even my competitors just to keep tabs on their activity. Once set up, you receive daily emails with links to the content in question.
5. Pre-approved marketing creatives and targeting with machine learning optimisation
Lead Gener8or tool can define a bespoke target audience per store and lock advertising geographical areas to prevent any cannibalisation. Once completed, franchisees can execute pre-approved marketing campaigns as and when they wish on any of the integrated channels (SMS, Email, Facebook, Google and Youtube), without any further involvement required from the marketing team.
Powered by big-data machine learning, campaigns are automatically optimised while in flight. Marketing teams can monitor all campaigns in real time. This tool really is a game changer for franchise marketing teams and brand managers.
With these tools correctly implemented into your business, the digital headache of your franchise’s marketing team can subside and focus on what you do best, delivering results!
Choose A Job You Love, And You Will Never Have To Work A Day In Your Life
Join Col’Cacchio’s 26-year-long love story.
- Joining fee: R125 000
- Monthly management fee: 6% of turnover
- Monthly marketing fee: 2% of turnover
- Total investment: approx. R2.5m to R4.2m (turnkey) Size: 140m2 to 350m2
- Unencumbered cash (before loan): 50% of total investment
(Above figures exclude VAT)
“Owning your own restaurant is like owning your own future.” – Dominic Dempers, Franchisee Durbanville, Belvedere & Meadowridge Cape Town
We’re looking for passionate franchisees who will love our brand as much as we do.
Why you should join this delicious success story
- Assistance with site selection & lease negotiation
- Store design & build
- Full training provided for management and staff
- Marketing & operational support
- Product innovation & menu development
- Efficiency in all systems
- Healthy margins.
“Our journey started with a single restaurant on the foreshore with the aim to serve the very best pizza around” – Greg Mommsen, Business Development Director
“Watching this brand grow and empowering people has been immensely rewarding. We have staff that have been with us for over 20 years. It’s like a family, we work hard, we laugh, we cry, we celebrate and of course, we eat a lot of pizza.” – Michael Terespolsky, Founder and Managing Director
“Becoming a franchisee is an amazing opportunity to join the family and become part of the Col’Cacchio success story. We’re 100% behind out franchises at every step, making sure that we all continue to learn and flourish” – Greg Mommsen, Business Development Director
“It has been filled with challenges along the way, but all the rewards have made every moment worth it.” – Michael Terespolsky, Founder and Managing Director
Visit www.colcacchio.co.za or call Tarryn Godley on 084 800 7264 and let’s get this adventure going.
Smoothie Franchise Opportunity: Puré Frooty Is A One-Of-A-Kind Smoothie Franchise Business
Looking for the next greatest franchise opportunity? Puré Frooty Smoothie is a highly perfected Australian business model launching in the South African market that doesn’t require extensive shop fitting or a large workforce.
- Brand: Puré Frooty
- Established: 2017
- Website: www.purefrooty.co.za
Puré Frooty Smoothie is a unique business model to the South African market. A delicious, fruit filled smoothie will be created at the touch of a few buttons.
An Innovative Franchising Concept
This innovation in the healthy smoothie industry is ground breaking for South Africa. The machine is manufactured in Australia by a highly skilled team. It took six years to perfect this business model for the consumer market.
The vision of Puré Frooty Smoothie is to offer convenient on-the-go smoothies for anyone. The experience and quality will always be of the highest standard. We aim to be a staple convenience in malls, schools, office parks and hospitals. This is a platform that will allow for self-growth for passionate entrepreneurs.
Our mission is to create a unique customer experience. We want to satisfy the nutritional needs of customers by providing quality smoothies. Puré Frooty Smoothie will be packed with all the goodness a smoothie should offer.
The four values we pride ourselves in are:
- Customer Satisfaction.
Why Consider This Franchising Opportunity
Extensive research into the business model and market
Puré Frooty Smoothie was an idea, researched widely, by people looking to simplify the business process for the consumer and business owner. There was a gap in the market for simplified customer service and a demand for a quicker turnaround time.
Simplified process for setting up a business
For an entrepreneur it can be very overwhelming to start or buy a new or existing business. There are so many crucial decisions that need to be made from the beginning and new concepts to adapt to.
Puré Frooty Smoothie simplifies that drastically:
- Free-standing machines: The business model revolves around a free-standing vending machine which needs to be visited to refill and maintenance.
- No shop-fitting required: There is no need for shop fittings or a large work force. All that is required is an inside space for the machine with a power supply.
- Minimal human resources needed: In terms of a work force, you could either do it yourself or have one person to assist you. There is also a part time involvement where refill station teams can refill and maintain the machine.
- Cashless business: The business is completely cashless so there are no worries of a note jam, full cash canister or insufficient denomination rand values. More importantly the machines would do a higher turnover than an ordinary vending machine so safety of no cash is important.
- Easy tracking of stock and performance: A cloud-based system is linked to the point of sale which allows you to monitor your performance and stock from the back-office platform at any given time.
- Efficient handling of maintenance: With a live point of sale system, the business is linked to a software which monitors the operations of the machine. Should anything malfunction an immediate notification will be sent with a diagnostics report.
- Human error is eliminated: Everything is done with a computer which leaves little to no room for errors. It is self-order and very user friendly.
Related: SA Fast Food Franchising On The Rise
Why Will Customers Love It
Puré Frooty Smoothie offers a vending machine that can produce a delicious smoothie in forty seconds. An informative touch screen ordering panel which displays all the nutritional information of the smoothie ordered and has the current news and weather.
No time wasted for the consumer. In fact, it’s a learning session disguised as a waiting period. The machine has two wash cycles after every smoothie is made to be freshly prepared for the next smoothie, business hygiene is important.
Consumers live in the fast lane. We are looking for something quick and most times we would like to be healthier. With the hustle and bustle of today’s life every little bit helps. Puré Frooty Smoothie fills that gap in the market.
Interested in Becoming A Franchisee?
Visit our Franchise Info Page for everything you need to know about how to become information a Puré Frooty Smoothie Franchisee owner.
You can also call or write to us:
Phone / 012-942 6360
Email / firstname.lastname@example.org
Want to know more about this franchise? Watch the video below for more.