lease extension fee Posted by iamcanadian

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lease extension fee

Posted by iamcanadian in Ask The Experts on 30.04.2011 1:46:48 pm | 902 views

hi there

i am a franchisee for 4 yrs now and recently the franchisor help negotiated a 4 yrs lease extension with the mall on my behalf but they are charging me a fee of $5000 for doing this work.

is that reasonable? or too high?

 

thanks 

Comments

Matthew on 01.05.2011 8:47:29 pm | Reply

It sounds very high to be honest but then I do not know how complicated these negotiations were.  

 

Did they speak to you prior to working on your behalf about how much this may cost you? 

 

I would negotiate with them on price if you did not sign anything contractual with them.

 

Kind regards,


Matthew Anderson

The Franchise Shop

 

iamcanadian on 08.05.2011 3:27:29 am | Reply

hi mathew

thanks for the reply

no they didnt tell me there is going to be a leasing fees. i didnt know such fee existed.

i only fee i know is the franchising fees. so i was quite shocked when i found out there is going to be a leasing fee on top of the franchising fee.

also, they just did a revised leasing fees and it is now $6000.

no  i didnt sign any contract with them regarding this.

 

 
selena jerbin on 11.07.2011 9:54:27 am | ReplyThe cost of rent in establishments really accrues annually. This has a great impact on tenants since they would pay wad of cash which equates to payday loans, so they can stay. Nowadays, picking a place for business isn't as simple as it used to be. With the economic downturn, there are many people looking to lease and fewer leases accessible. Property owners have the advantage and can afford to be much more picky about who they lease to. Today's renter has to be savvier than ever before to get a good deal. Well, this is reality but I'm hoping that this can still be managed. You have to decide carefully. 

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