Franchise Leases

Licensing out your precious brand? Protect your profitability through sound commercial leasing.

 

If you operate a franchise business, your revenue will be regulated by two significant contracts – the franchise agreement and the business lease, sublease or licence you’ll be granting or transferring to your franchisee. It’s imperative that the documents correlate. If there’s conflict between the two agreements, there’s a risk that you’ll lose revenue, control, and continuity of the franchise business.

As long-time franchise property specialists, Eve Property are the go-to resource for franchise leasing throughout Australia. We help multi-site businesses negotiate franchise leases and subleases that blend seamlessly with the franchise operation. Hassle free, and with full step-in rights so you can replace the franchisee if things go wrong.

As a franchisor, it’s usual to charge a turnover rent based on a percentage of sales, alongside the royalty fees payable under the franchise agreement. In these circumstances, property-related costs (such as outgoings charges, maintenance and repair costs, and insurance elements) can also be passed on to franchisees under the contract.

These extra costs can come as a surprise to franchisees. That’s why we take special care of small business owners who might not understand the franchising process as well as you do. We’re proud to take a conflict-free approach to franchise lease negotiation, ensuring win-win outcomes regardless of where you sit at the negotiating table.

A safe pair of hands in franchise lease advisory.

At Eve Property, we don’t just negotiate franchisee lease agreements. Our aim is to be your trusted ally in property strategy, helping you to avoid the pitfalls in commercial leasing and zealously seeking every possible gain for your business. In a market where conflicts of interests are extremely common, we work cooperatively so that everyone – franchisors, franchisees and landlords – gets the result they need.

The message is simple: don’t trust your franchise business to a generalist leasing agent. Speak to a franchise property specialist with the experience and desire to achieve premium results for your franchise business. The experts at Eve Property are ready to listen.

Retail Leases

Opening a shop? Look before you lease.

If you’re ready to sign a retail lease agreement because you’ve agreed a yearly rent, pause for a moment. The typical shop lease has 50 pages with provision after provision … after provision. The landlord may not be trying to catch you out. But you’re probably going to need some expert advice to make sure you get the best protection.

That’s where we come in.

Eve Property are experts in retail leases. We make sure that all retail lease agreements comply with the Retail Leases Act. This means better protection for tenants and increased obligations for landlords.

Then, we negotiate hard to get the protections you need for the way that you do business.

With us, tenant-friendly clauses come as standard. We make sure that you pay the market rent (and not a dollar more). We limit your exposure at rent review, so your overheads remain controllable and sustainable. And we negotiate contractual assurances that the landlord will never, ever hit you with a bill for unreasonable outgoings.

Too often, business owners come to us questioning the onerous and unfavourable terms their landlord has implemented. We sympathise … but there’s not much we can do to help them. By the time the lease is signed, it’s already too late.

Our mission is to help business owners of all classes avoid costly mistakes by ensuring the retail lease agreement is fair and reasonable to both parties. We go for win-win, not no-win. We’re completely separate from landlords’ agents, and we pursue a fair deal for you, the occupier. You don’t have to sign anything that you’re not comfortable with. It’s your business. You get to make the decisions. You decide what’s best for your money.

Sell you our services then hit and run? Completely alien.

Eve Property can guide you through the whole leasing journey, from the minute you think about leasing a property to the thrilling day when you get the keys.

But that’s not all we do.

We work with you to find a suitable property that fits the needs of your business. We then work tirelessly to negotiate exactly the right retail lease agreement for your business, smooth out any teething problems, help you dispose of any real estate liabilities, assist with rent reviews, and empower you to make quality decisions throughout the life of your tenancy. It gives us great pleasure to provide this opportunity to every business owner who needs help with a shop lease, and we extend a warm welcome to anyone who wishes to invest in greater savings for their retail properties.

Write this on a rock ……

All lease terms are negotiable. We help tenants of all business classes get the best possible terms from their retail lease agreement with no hidden surprises.

Office Leases

Time to start moving. Or time for smart moving?

Most commercial lease agreements don’t fall under the Retail Leases Act. As an office tenant, you may not get the built-in protection that a retail tenant gets. So it’s essential that you negotiate an office lease agreement that’s as favourable to you as it is to the landlord.

Too often, we see the landlord draft the lease and it always favours the landlord. The perfect scenario for a landlord is a financially sound tenant who pays a full market rent and is fully responsible for all repairs, outgoings, costs and expenses. Preferably one without an exit clause who is on the hook for these payments for the entire lease term.

At Eve Property, we don’t think that’s fair. We work hard for tenants who need help negotiating a commercial lease agreement, because we don’t believe that commercial lease negotiation shouldn’t be a zero-sum game.

No more paying the Landlord’s legal fees to negotiate the lease. We don’t think it’s right that you should pay for the privilege of doing business with someone.

No more agreeing to pay unreasonable outgoings. You won’t get stung for excessive management fees or contributions to sinking fund levies on our watch.

No more barriers to exit. We include nimble subletting and assignment clauses in the commercial lease agreement so that you can leave the lease early if your business changes path.

And absolutely, definitely, no more surprises. As well as negotiating upfront savings like rent reductions and incentives, we make sure you won’t be hit with rectification costs at the end of the lease term.

Disputes are a fact of life and part of any business relationship. But they don’t have to be costly. The key to a smooth tenancy is to get the lease right from the beginning. We can save your business time and money and give you the peace of mind that your lease agreement is protecting your position – not leaving you exposed.

Doing right by Tenants

Let’s not beat around the bush. Commercial lease negotiation is stacked in favour of the landlord. Unlike most agents, we work exclusively with tenants. We’ll help you negotiate the best lease terms for a stress-free occupancy – saving you time and money along the way.

No Nonsense

We cringe when landlords’ agents try to blind tenants with jargon, or convince them that something is “industry standard” when really it is not. Here’s the thing. If you have found a commercial property, we want to help you lease it in a commercially reasonable way. No games, no gimmicks, no nonsense – just good, tenant-friendly advice at reasonable rates.

Share our knowledge

We believe that transparency –along with honesty, dependability and decency – should be part and parcel of commercial lease negotiations. Bringing a combined 30 years of real estate experience to the table, consider us your trusted leasing partner: clear, direct and open at all times.

Portfolio Management

Give us your leasing problems. We’ll save you money.

Problems arise if the fundamentals of property management are not dealt with correctly. Businesses that occupy multiple properties often learn this lesson the hard way – in disputes, in unexpected outgoings expenses, and in eye-watering make good costs at lease end.

We understand that your lease obligations can be a burden round your neck if liabilities are not managed properly. Let us perform a health check on your property portfolio, and take a weight off by:

  • Building and maintaining good working relationships with landlords
  • Acting as the principal point of contact for day-to-day communication, such as facilitating inspections and coordinating repair programs
  • Smoothing over issues with creative dispute management strategies and a zealous focus on win-win solutions
  • Slashing reactive maintenance costs and make good liabilities by ensuring your repair strategy is fit for purpose and flexible
  • Challenging outgoings statements, and recovering any costs that the landlord is not entitled to charge; has overcharged; or is trying to sneak in through the back door
  • Managing critical dates so you never miss the exercise of an option or the window you have to challenge a rent review
  • Calculating the right rent at rent review; keeping your biggest expense as low as possible
  • Ensuring you are not paying a dollar more than you are legally obliged to do.

We don’t wish to brag, but we have quite a reputation in this sector. Over the years, we’ve built a solid professional relationship with many landlords and their agents – our network is fantastic. There’s mutual respect between us and your landlords. In an industry where landlord/tenant relations are inherently adversarial, we work hard to make sure negotiations are not battle-like as if we were trying to blaze our way through a war zone, but professional and well-articulated.

That way, we forge happy relationships with landlords as well as saving your money. Which means we support you in critical areas, while maintaining your precious reputation as nice people to do business with.

 

 

 

Tenant Representation

We deliver savings at every level of your real estate strategy. (Whether you’re going in, or getting out.)

Full Tenant Representation Service

If you’re looking for a property, we will help you with sourcing a suitable commercial property; providing you with up-to-the-minute research on market rental rates, negotiating the lease terms on your behalf, and much more. Our services include:

  • Developing a property brief suitable for your current and future requirements – we think about size, location, timing, budget and other options you may not have thought of based on workplace best practice and evolution
  • Liaising with landlords and leasing agents to solicit suitable properties and offers
  • Reviewing and shortlisting the property options against the business goals you’ve defined
  • Inspecting shortlisted properties to identify how the space might work for you
  • Providing market information (rental rates and incentives) on the preferred location, summarising the costs involved
  • Negotiating Heads of Agreement with landlord and/or their agent to secure the very best financial and leasing terms possible
  • Reviewing the lease document to ensure it covers off our “hot points” in terms of potential costs and liabilities
  • Providing recommendations on other terms to be included within the lease – we make sure you’re not exposed!
  • Liaising with your solicitor and other professional advisers right up until the moment you get the keys.

Remember, we only ever represent tenants, never landlords. We are always independent and conflict-free in the transactions that we recommend.

Lease Negotiation

When you’ve found the perfect commercial property, it’s time to pick up the phone. As fully independent tenant specialists, Eve Property can help you to negotiate the fairest lease terms and get the best possible outcome from your property. Things like:

  • Rent – we help you negotiate a market rent (and not a dollar more)
  • Term – stay as long as you need; have the flexibility to leave early if your plans change
  • Rent review – control your overhead by knowing when and how your rent will increase
  • Outgoings charges – we think expenses should be legal, transparent and reasonable
  • Make good obligations – the right clause upfront can save you thousands of dollars at lease end
  • Repairs and maintenance – we limit your exposure while making sure the landlord meets their obligations, too.

Review Heads of Agreement/Offer to Lease

Happy to negotiate yourself but want to make sure that the terms you’re negotiating are fair? We can review the commercial terms for you and provide sound and savvy advice on the type of concessions you should be pushing for. We provide clear research on market rental rates and incentives, and ensure the terms comply with the Retail Leases Act (if applicable).

Lease Renewals

Don’t just stick with the same old, same old. If your lease is due to expire, it pays to see what else is out there before you sign a renewal lease. We can appraise the market, check out alternative properties and weigh up the cost of relocating. In the unlikely event your current landlord is asking over the odds for your renewal lease, you’ll have all the information you need to negotiate a better deal. Because knowledge equals power, right?

Rent Review

Is the proposed rent reflective of the market? It should be. We can determine if the landlord is asking too much and get you a fairer deal. Don’t waste time on tough and tricky rent negotiations with no guarantee of success. We deal with the nitty gritty – so you can get on with the day job.

Make Good Negotiations

Tenants aren’t permitted to just walk away when the lease ends. The sting in the tail is that you’ll have to “make good” anything that has deteriorated during your occupancy and return the premises to its original state. But repainting, re-carpeting and reinstating fixtures can be costly. If there’s no evidence to show what the property looked like at the beginning of the lease, the landlord could ask you to put the property in a better condition than when you moved in. It’s shocking.

How can we help? Two ways. First, we’ll work hard to make sure that you’re only liable for reasonable “make good” obligations when we negotiate your new lease. Then, at lease end, we’ll crack the whip and ensure the landlord sticks to the letter of your lease agreement. No beating around the bush. Just a nice, clean, minimum-cost lease exit.

Outgoings Analysis

Commercial tenants don’t just pay the rent. They pay other expenses, too, such as the cost of security, garbage collection and servicing the air con. The lease sets out what you have to pay and how your proportion is calculated. But fair warning. The outgoings clause can be pretty wordy. And you might have to dredge through files of receipts to get to the tasty info (the bit that shows the landlord is charging you too much.)

So here’s the thing: we can get all the backup information from the landlord, analyse the charges and make sure you are not paying for someone else’s costs. We’re pretty good at it, too. We don’t want to blow our own trumpet, but there’s a reason why our clients keep coming back to us. Because our advice makes a difference. We keep the cash where it firmly belongs – in your pocket, not the landlord’s.

Early Lease Exit

Need to get out of your lease early? We don’t want to burst your bubble but often, it’s not as simple as you might think. We specialise in occupier disposals and can advise you on the best route for an early exit. This might include finding a new tenant or sub-tenant to take over the liabilities of the lease or negotiating a surrender with the Landlord – whatever strikes the right balance between reducing your financial liabilities and hitting the timescales of your move.

Industrial Leases

Industrial units are vital elements of the supply chain for commercial occupiers. So don’t make a move without us.

Any lease poses a potential risk to your business. Despite this, too many business owners – even the property-savvy ones – sign a fill-in-the-blank lease that doesn’t recognise their individual business goals.

Eve Property are old hands in the industrial market. We’ve been there, done that and probably bought the T-shirt. And because we have the experience, we understand the complexity and challenges of industrial leasing. We know that to negotiate a warehouse lease, you need to look beyond the lease term, rent and other incentives. Our value-added comes from spotting the under-the-radar issues. Clauses which, in less experienced hands, could hold nasty surprises at lease end.

Take a look at these potential pitfalls:

Hardstand and Load Weight Warranties

We’ve seen far too many disputes between landlords and tenants over the condition of the concrete hardstand at the end of an industrial lease agreement. And believe us, they’re never pretty. If the lease isn’t clear who is responsible, then you, the tenant, could be stuck with a hefty repair bill for degradation you didn’t cause.

We make sure that the warehouse lease clearly documents the load weight warranties of the hardstand. That way, everyone knows the maximum load the floors can withstand. As long as you comply with the load weight restrictions and maintain the floors such as resealing grout lines, then you won’t be responsible if the hardstand fails at the permitted weight. It’s extra work at the beginning. But trust us, it will be a weight off your mind at lease end.

Environmental Risk

Fact: industrial properties have more exposure to potential environmental issues than other commercial properties purely on the location and past uses of the sites. Guess who pays for the clean-up? If the lease is not drafted properly, it could be you.

Environmental liabilities are some of the most hotly negotiated clauses in a warehouse lease. At Eve Property, we make sure you’re adequately covered. With us in your corner, you won’t be stung by liabilities related to site contamination you didn’t cause.

Before you sign that lease…..

Join our single-minded mission to demand better. You don’t have to put up with an off-the-peg industrial lease agreement that won’t protect you if things go wrong. With a little effort, you can always negotiate significant improvements to the lease terms.

It’s our mission to seek every possible gain for industrial tenants, whether they’re single-site start ups or occupiers with a national presence. No games, no middlemen, no conflict of interest – just solid, occupier-first advice at reasonable rates.

Ready to learn more? Let’s talk.