You want to start a franchise and are thinking of renting commercial premises? Before leasing a commercial site, it’s essential to carry out a number of preliminary checks. Here’s how it works.
The lessee and lessor are bound by a commercial lease, which includes rent and even the right to lease. The term of the contract is 9 years, in accordance with article L. 145-4 of the French Commercial Code. In France, however, the contract can be terminated every three years.
Conduct market research
Before leasing commercial premises, it’s essential to carry out a thorough market study. This analysis will ensure that the choice of location meets your business needs and complies with the strict legal requirements of the franchise. The results will enable you to understand local demand for your products or services, identifying trends, preferences and buying behaviors specific to the region. In the event of non-compliance, you can adjust your offer and develop a competitive strategy to best meet the expectations of the local public. In addition,market research must also consider the competition in the chosen area. This is achieved by identifying the key players, understanding their strengths and weaknesses, and assessing the customer potential available in the territory in question.
Investing in commercial premises to suit your budget
When it comes to leasing commercial premises, it’s imperative to ensure that the rent is in line with the duration of the commercial lease and well integrated into the business plan, because by analyzing the local market, it’s possible to minimize risks and ensure the viability of the project. In addition to the basic fee, consider additional costs such as rental charges, property taxes and utilities. What’s more, you need to make sure that the overall amount is in line with your financial projections and the specific aspects of the business sector in which you want to franchise.
Lease contract for commercial space
A careful reading of the lease contract will help you understand all the clauses that could have implications for the franchise. You need to carefully check the duration of the commercial lease, renewal conditions, termination clauses and any renewal options. In addition to a good understanding of exit conditions, including notice periods and any penalties, it’s essential to familiarize yourself with the terms of the security deposit and leasehold rights, which can have a significant impact on your franchised business.
Checking zoning and obtaining permits
Before signing the lease for your commercial premises, we recommend a thorough zoning check. This will ensure that it is compatible with the business you want to franchise. You also need to obtain all the necessary permits from the local authorities, bearing in mind your company’s specific requirements. This may include inspections of access conditions, particularly if the space in question is located on the first floor, and if there are interior staircases or basement features.
Inspection of overall store condition
In discussions with the owner of the premises, it is important to address the question of compliance with safety standards applicable to the type of commercial premises, such as ERP, and to clearly determine who will be responsible for the work in the event of non-compliance with the requirements of the building and urban planning code. Thoroughly inspecting the general condition of the commercial premises is an essential step before concluding the lease. This includes an inspection of electrical installations, plumbing, air conditioning and ceiling height. In addition, the accessibility of the point of sale, taking into account itsstrategic location, must be verified to meet the needs of customers and staff alike.
Understanding lease exit conditions
Understanding the lease exit conditions is just as important as understanding the entry terms prior to leasing commercial premises. You need to clarify the notice required and any penalties for early termination. These details need to be factored into the long-term planning of your franchise business, as do renewal options that could influence your decision at the time of leasing.
Negotiating the rent
When negotiating the rent for your franchise premises, you need to take into account the total surface area, proximity to essential services, and specific features of the location, such as a large open space or meeting rooms. Support your arguments with information on local rental prices in the area and the amount of annual rent excluding service charges. At the same time, remember to check the services and facilities included in the fee, such as heating, air conditioning, Internet access, and other amenities essential to the running of your business.
Find secure commercial premises
When selecting a space for your future business, pay particular attention to security by checking the presence of systems such as alarms and cameras, while ensuring compliance with local safety standards. This will ensure a safe environment for your employees, customers and business assets. In addition, it’s also important to find out about additional rental fees and other costs that could impact the profitability of your franchise. Total transparency will help you manage your company’s finances more efficiently.
Our 5-point summary by L’Express Connect IA
(vérifié par notre rédaction)
Here’s a five-point summary of the article on the subject: Checks to make before leasing commercial premises: .
The importance of in-depth market research: Before committing to leasing commercial premises, it’s crucial to carry out detailed market research. This ensures that the location is suited to commercial needs and meets the specific requirements of the franchise, taking into account local demand, competition and customer potential.
Rigorous financial and budgetary analysis: Investment in commercial premises must be in line with the franchisee’s budget and financial projections. Rent, as well as additional costs such as service charges, taxes and utilities, must be carefully evaluated and integrated into the business plan.
Full understanding of the lease agreement: Reading and understanding the lease agreement is essential to grasp all the potential implications for the franchise. Clauses concerning the lease term, renewal conditions and security deposit obligations must be carefully examined.
Checking zoning and authorizations: It is imperative to check the zoning of the premises and obtain all the authorizations required for the planned activity. This includes inspections for access, safety, and compliance with building and planning standards.
Precise inspection of the condition of the premises: A thorough inspection of the premises is necessary to ensure compliance with safety and accessibility standards. The condition of electrical installations, plumbing and equipment must be assessed, as must the location and accessibility of the sales outlet.
