Annex Brands Helps Lower Rents For Franchisees

Franchising.com:

During the current economic downturn, the Home Office of Annex Brands Inc. is helping its franchisees renegotiate store leases with landlords to reflect current market conditions. And the shipping and business services franchisor is seeing steady success with this plan.
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“In most cases, the biggest monthly expense an owner will incur is the lease,” said Franchise Placement Specialist Chris Kimball. “In light of the current economy, it’s smart to take a look at all expenses to see where there might be opportunities for savings. Fortunately, retail rent is a lot more negotiable than it was a year ago, and landlords especially want to keep national brands like PostalAnnex+ from leaving their centers. So we’re urging all of our franchisees to take advantage of our excellent relationships with landlords and get market adjustments where possible.”

Across the nation, many commercial landlords say that rent concessions and discounting – even if temporary – are a common and practical move right now, in order to keep commercial space filled. Since the beginning of 2009, Annex Brands has successfully renegotiated nearly 40 leases, with an average reduction of 25% in lease payments. Kimball points out that the leases which were in consideration included those which were close to expiring, as well as those with high rent, given current property values. And while lease reduction is the major reason most franchisees seek out renegotiation assistance, there’s the added benefit of the lease being extended for a long period of time. This ensures continued service in a community.

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