
Secure the Right Location, Terms & Costs for Long-Term Success
Choosing a great location is half the battle β but negotiating the lease is where many new burger franchisees lose money, flexibility, or control. A poorly negotiated lease can eat into your profits, restrict your growth, or tie you to a space that limits your brand experience.
At BurgerFranchiseMaster.com, powered by Star Brands Consulting Group, we guide franchisees through one of the most critical steps of launching a burger business: lease negotiation.
Hereβs how to approach your lease like a seasoned operator β even if itβs your first time.
π§ 1. Start with Market Research
Before you sit at the table with a landlord, understand the local market:
- Compare rental rates in the area
- Study foot traffic patterns and competitor proximity
- Consider growth forecasts for the neighborhood (new malls, transport links, etc.)
Tip: Landlords respect tenants who know the numbers.
π£οΈ 2. Bring in a Tenant Rep or Lease Consultant
Hiring a commercial real estate agent or franchise lease consultant can:
- Help you avoid legal traps
- Secure better rates and terms
- Give you leverage as an informed negotiator
Star Brands Consulting Group offers advisory services specifically for franchisees.
π 3. Key Lease Clauses to Watch
Here are the top terms that can make or break your burger franchise location:
β Rent and Escalation
Negotiate a competitive base rent and limit annual increases (no more than 3β5%).
β Lease Term and Renewal
Aim for a 5β10 year lease with renewal options to protect your location investment.
β Exclusivity Clause
Ensure your landlord canβt lease nearby units to a competing burger or fast-food brand.
β CAM (Common Area Maintenance) Fees
Make sure shared maintenance costs are clearly defined β and fair.
β Exit Clause or “Good Guy” Clause
In case things donβt go as planned, this clause allows you to exit responsibly without severe penalties.
β Build-Out Allowance
Negotiate for the landlord to cover part of your renovation/build-out costs β often called a tenant improvement (TI) allowance.
π 4. Negotiate for Flexibility
Ask for:
- Rent abatement (free rent during construction/startup months)
- Subletting options in case you want to relocate or sell
- Signage rights to increase your visibility
π 5. Think Long-Term
Donβt just negotiate for opening β think about:
- Future expansion
- Adding a ghost kitchen or delivery hub
- The impact of renovations or area redevelopment
Every clause should support your 5β10 year business plan.
π§ Final Thoughts
A burger franchise lease isnβt just a contract β itβs a foundation for profitability and operational control. Rushing through negotiations or accepting boilerplate terms can lead to long-term regret.
Need Expert Help with Your Franchise Lease?
At BurgerFranchiseMaster.com, powered by Star Brands Consulting Group, we help franchisees:
- Analyze location opportunities
- Review and negotiate lease terms
- Connect with experienced franchise tenant lawyers
- Maximize build-out and financial support
π Schedule a Lease Advisory Call Today
π₯ Download Our Franchise Lease Negotiation Checklist (PDF)