Multi-Unit Franchisee Magazine Issue I, 2014 | Page 80

By Helen Bond

lease

negotiation

11
0

Zeroing in
on the
right site
and the
right deal

A

Laurel Wilkerson

78

Multi-Unit Franchisee Is s ue I, 2014

fter 34 years of negotiating leases for 150 hair
salons in California and
the New York Metro area,
Gary Grace appreciates the advantages
of being part of a franchise system with
a well-known name.
“You get more respect from the landlord because you have the power and
success story of the brand behind you.
It really makes a difference,” says Grace,
CEO of California-based GG Enterprises,
which today owns 36 Supercuts salons
and one Cost Cutters. “The bigger the
name signing the lease, the more secure
the landlord feels, and the more leverage
you have in negotiating.”
These days, nearly all prime real estate is rented, not sold: an estimated 98
percent of retail and commercial space
is available only for lease. And while a
familiar name might get a franchisee in