Why Now Is the Time to Implement Griffin Financial’s Lease Capital Program and Make Your Lease Work for You
By Kent Franchise Law Group
One of the many advantages of our affiliation as part of The Stevens & Lee Companies is our access to innovative programs that our team of professionals develop. The platform gives us the opportunity to present ideas to clients that improve the success of their business, overall. This multi-disciplinary approach to client representation allows our team to address the needs of our clients across many facets of their businesses.
The Lease Capital Program (“LCP”) is a one such program, developed by our real estate professionals at Griffin. LCP presents specific benefits for those in the franchise industry. Using industry databases, Griffin’s proprietary technology, and proactive contact with landlords, the program provides tenants (in this case, franchisees) in triple-net leases with access to additional capital embedded in their current lease terms. Monetary results can be up to six-figures for qualifying tenants. The premise is simply that the LCP allows qualifying locations to pay for 30% to 100% of improvements/upgrades at a cost of capital of 0%. Additionally, the LCP program is billed to franchisees on a success basis, and thus, exploring the program is no risk to franchisees.
LCP is a win-win-win for franchisors, franchisees, and landlords. For franchisors, their franchise locations undergo remodeling and rehabbing to comply with the latest brand specifications, and present franchisor’s freshest face to the public. Stale décor, outdated images, and old slogans are gone. In many instances, these brand updates may occur earlier than what is required in their franchise agreements, and will allow the entire system to be remodeled more quickly. Franchisees benefit from the remodeling as well. The franchisee will be able to undergo significant remodeling at no cost. Such remodeling is usually required by the franchise agreement periodically throughout the term, and is a significant expense to franchisees. Further, market research has shown that remodeling a business can increase sales from anywhere between 10% and 25%. For landlords, the benefit is a longer lease term with an attractive tenant to drive more customers to landlords other nearby businesses, and an increased valuation of the property in the event the landlord wants to sell.
As we emerge from several months of government mandated closures, limitations on indoor and close-proximity activities, such as dining, recreation, fitness, and many more, now is the time to call us to see if the Lease Capital Program can provide you with some much-needed capital to refresh and welcome your customers back with a new, remodeled and refurbished location, at no cost.