Modern Franchise Magazine August 2013 - Page 29

8 Who were the last two tenants to move out? When and why did they move out? Did they move across the street or did they close? As before, you will want to speak to these former tenants, and ask for more details about their reason for leaving as well as their opinions of the landlord, property manager and the property itself. 9 Who is the property’s biggest tenant (the anchor tenant)? How secure is this anchor’s tenancy? The anchor tenant(s) typically attract the most traffic to a property so you will want to confirm they will be staying. Tenants in a shopping centre located near my home were recently caught unaware when Safeway, the anchor tenant, moved out. Despite having a long-term lease, Safeway (or another large grocery store chain) can often move their business but continue to pay the rent, thus disallowing any competitor to move in. We Help Small Businesses Succeed. CRM Marketing E-Commerce 10 Is the building for sale? Building owners looking to sell their building will have different motivations with prospective tenants. Also, consider that you may like the current landlord but dislike the new landlord. You may feel uncomfortable asking these questions; however, franchisors, real estate agents and property managers are typically open to providing answers. As a franchise tenant, you have every right to know the entire picture. I strongly recommend that you type out these questions as a worksheet and refer to them before negotiating or renegotiating begins. SEE HOW maxiom Modern Franchise Magazine | 29