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Just closed on a small strip center unit after picking between two very different tenants.
One was a local coffee shop with a solid 5 year history but lower rent, the other was a new cell phone repair franchise offering 20% more per square foot. I went with the franchise because the lease had a personal guarantee and a 10 year term, and the first month's check cleared yesterday. Has anyone else had to choose between a proven local business and a higher-paying new chain?
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samf955mo ago
A personal guarantee is good, but it's only as strong as the person backing it. That new franchise could still fail and leave you with a long empty space. The local shop's track record has real value too.
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joel_adams795mo ago
Yeah, the part about the track record having real value really hits home. I used to get dazzled by the shiny new franchise promises, but samf95 is right. That local shop has already proven it can last through the slow seasons, which a guarantee doesn't cover. You can't get that kind of history from a brand new place, no matter who signs the paper. Makes you weigh the risk totally different.
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