ATENANTCo CRE Services for Franchises

Multi Unit Franchisee Site Selection ReCon - Boots on the Ground Edition
Outparcel Single Tenant Former Capital One Property-Plano

#FranchiseRealEstate, #SecondGenSpace,#MultiUnitGrowth, #MultiUnitFranchisees , #MultiBrandFranchisee , #atenantco

2 weeks ago | [YT] | 0

ATENANTCo CRE Services for Franchises

Multi-Unit Franchisees Growth Gems: “Real World Advice from the Front Lines”

3 weeks ago | [YT] | 0

ATENANTCo CRE Services for Franchises

Multi Unit Franchisee Site Selection ReCon - Boots on the Ground Edition



The last major player on this corner, Chick-fil-A, moved across the street because they needed a larger pad site for their dual drive-thru, and that's where the new retail and restaurant energy is now flowing and growing.



Should you follow the herd or be a pioneer with this vacant On The Border restaurant property?



#CommercialRealEstate, #SiteSelection, #RetailShift, #RestaurantRealEstate #CRE #HighTrafficSite, #RealEstateDevelopment, #ATENANTco, #MultiUnitFranchisees

3 weeks ago | [YT] | 0

ATENANTCo CRE Services for Franchises

Multi-Unit Franchisees Forward-Insights & Actions:

Multi-Unit Franchise growth isn't about being busy, it's about being profitable. Acquiring underperforming units to "fix" them is a slow, capital intensive grind. The fastest path to scale is to buy the best.

Pie Investments won a bidding war for 85 stores that were "the Cadillac of Papa John's stores." This strategy accelerates your goals by minimizing risk and maximizing immediate, strong cash flow.

The Problem

The "Fixer" Trap: Getting stuck acquiring underperforming units that drain capital, time, and management resources for 18+ months of turnaround efforts.

Missed Cash Flow: Failing to prioritize assets that generate immediate high-margin revenue to fuel your next strategic development phase.

Organizational Drag: Allowing low performing acquired units to drag down your overall system averages and distract leadership from high value strategic work.

The Solution
The Cash Flow Multiplier: Focus your capital on high performing assets that provide immediate, strong, and reliable cash flow that can be used to fund your new development pipeline like Pie Investments’ 52 new stores.
 
 Premium Valuation Justification: Work with a strategic partner to build a robust financial model that justifies the price of a premium portfolio based on long-term cash flow and reduced operational risk.

Operational Synergy Target: Target portfolios that already meet or exceed system averages, allowing your leadership team to focus on achieving efficiencies rather than fundamental turnarounds.

What is the #1 financial metric (EBITDA, AUV, etc.) that would convince you to pay a premium for a "Cadillac" portfolio?

#MultiUnitGrowth, #FranchiseAcquisition, #OperationalExcellence, #PortfolioOptimization ,#CashFlowIsKing, #StrategicBuyer, #FranchiseeFinance, #ATENANTco,#Multi-UnitFranchisees

3 weeks ago | [YT] | 0

ATENANTCo CRE Services for Franchises

Multi-Unit Franchisees Growth Gems: “Real World Advice from the Front Lines”

Stop doing the "tap dance" with local banks. If your Franchisor isn't actively "laying a path" for your capital, they are failing their primary duty. Access to capital shouldn't depend solely on your personal hustle; it requires a Franchisor who acts as a strategic partner in securing lender confidence.

The Problem:

The ROI Blind Spot:
Franchisors mandating massive remodel investments every few years without asking the critical question: "Does it even make sense in today's environment?". This blind compliance ignores whether the investment actually benefits the guest.

The "Solo" Tap Dance:
Forcing Franchisees to sell the brand to local banks individually. Without a national lending program, you are wasting time explaining the business model rather than negotiating terms.

Lender Risk Exposure:
When a location goes dark, does the lender lose everything? Without a backstop strategy, lenders tighten their purse strings, hurting your ability to scale.

The Solution:

Demand a "FIAC" Structure:
Push your Franchisor to establish a Finance Committee (like Burger King’s FIAC) that goes on "roadshows" to sell the Franchise brand's investment value directly to national lenders

Leverage Your "Developer" Story:
Capital is abundant but highly selective. It matters "who is coming to the table". Shift the conversation from the brand's strength to your specific success story as a developer to unlock national tiers of funding.

The "Backstop" Agreement:
Partner with Franchisors who commit to "putting their best efforts forward" to backfill struggling locations. This safety net protects the lender and ensures capital keeps flowing to successful operators like you.

Does your Franchisor primarily act as a Compliance Officer (demanding remodels) or a Capital Partner (facilitating lending)?

#FranchiseFinance, #CapitalAccess, #MultiUnitGrowth, #LendingStrategy, #RemodelROI,#FranchiseePartnership, #atenantco , #Multi-UnitFranchisees , #FranchiseStrategy , #MultiBrandOperator

4 weeks ago | [YT] | 0

ATENANTCo CRE Services for Franchises

The traditional Franchise model must have flexibility to survive. Store sizes, menu, & operations are now strategic liabilities if they can't adapt to the off premise boom & the squeeze of higher costs & conscious consumer spending.

Agility must be negotiated. As Multi-Unit operators, you control the most valuable asset verified local data which now reveals 3 crises: The digital shift, The changing macro environment, “higher operating costs”; Consumer spending consciousness.

Use this data to justify strategic modifications across the entire value chain, demonstrating to the Franchisor that flexibility is essential for maximizing revenue per square foot and defending unit profitability.

The Problem

Ignoring The Cost Squeeze: Failing to aggressively pressure the Franchisor for flexibility on food propositions & value deals. In an environment of conscious consumer spending, sticking to rigid pricing & menu formats guarantees a loss of value driven customers.

Single Channel Design: Continuing to rely on a traditional, large format store model designed primarily for in store dining when local sales data shows a significant increase in demand for delivery & mobile ordering, ignoring the highest growth revenue channel.

Wasting Labor on Tradition: Failing to adapt back of house operations to the digital age; keeping operational workflows designed for long in person queues rather than optimized for high volume off premise orders wasting valuable labor hours & decreases speed of service.

The Solution

Demand Menu Flexibility & Value Engineering: Use your sales data to advocate for value focused menu items & competitive deals that address consumer spending without sacrificing quality, including piloting local only specials to attract price sensitive customers.

Optimize the Footprint & Operational Flow: If you can't shrink the box, utilize the existing large format space strategically; carve out a dedicated, efficient area for delivery & mobile pickup that doesn't disrupt the in store customer experience.

Invest in Strategic Agility: Systematically analyze your operational model & adjust the store format or menu offerings to maximize efficiency for digital channels. This data is your primary leverage to demonstrate to the Franchisor that compliance with the old model is a financial liability.

Which delivers more immediate value to your P&L; Flexibility Remodels/Footprint or on Menu/Value Propositions?

#OperationalAgility, #ValueProposition, #FranchiseStrategy, #MenuEngineering, #ConsumerTrends, #atenantco, #multiunitfranchisee

4 weeks ago | [YT] | 0

ATENANTCo CRE Services for Franchises

Multi Unit Franchisee Site Selection ReCon - Boots on the Ground Edition

That 6,000 SF site next to BJ's isn't just a building; it's a strategic opportunity to deploy capital into a flagship operational model that justifies premium rent.

For Multi-Brand Multi-Unit Franchise operators, a large, well equipped site with features like a private dining area and outdoor patio forces a critical question:

How do we use this prime asset to maximize revenue channels and minimize operational risk?

If deploying a new concept into this 6,000 SF site, would you prioritize Ghost Kitchen/Delivery Hub Revenue or Experiential Dining/Private Event Revenue?


#OperationalStrategy, #BrandDiversification, #MultiConcept, #CapitalDeployment, #FlagshipModel, #RealEstateOptimization,#franchiseerealestateservices,#groundupdevelopment,#commercialleasing,#emergingbrands,#atenantco,#advisoryservices

1 month ago | [YT] | 0

ATENANTCo CRE Services for Franchises

Multi-Unit Franchisees Forward-Insights & Actions:

Aggressive leverage made many Franchise operators wealthy in 2021. It’s the same force that just handed FAT Brands a $1.3 BILLION bill due immediately.

FAT Brands' potential failure is the clearest warning sign against over leveraged growth models. They prioritized speed via a debt fueled acquisition spree on the assumption of cheap, perpetual money.

The Problem

The Franchise Unit Economics Collapse
Leveraging Franchise unit profitability based on low interest rates & a "rosy proforma" creates an immediate crisis when the cost of debt service jumps thus the aggressive debt structure fails to pencil out, forcing a financial collapse independent of the Franchise units' operating success.

The Unchecked M&A Multiplier
Using massive corporate debt to multiply Franchise units multiplies your risk profile faster than your operational maturity. It treats growth as a purely financial transaction, neglecting the operational stability required to support the debt load across a diverse, acquired portfolio.

Absence of Downside Protection
The core strategic failure is the lack of a contingency plan for a market correction & an unprotected debt structure leaves the entire enterprise vulnerable to a single, catastrophic market event.

The Solution

Stress Test Your Debt Structure
Model your unit economics not just at the current rate, but with a +300 basis point rate increase and a -15% revenue haircut and only proceed with development agreements where the Internal Rate of Return survives the stress test.

Establish Liquidity Reserves
Implement an enterprise level financial policy that prioritizes a liquidity reserve that can cover the difference between current debt service and projected refinancing costs for a minimum of 18 months thus liquidity is the ultimate downside protection.

Prioritize Sustainable & Internal Growth
Focus on growth fueled by strong, predictable Franchise unit level cash flow and strategic equity raises, rather than debt heavy acquisitions as your goal is operational stability that can withstand macro shock, not just maximizing speed to scale.

In your current capital planning, are you prioritizing Debt Reduction or Liquidity Reserves?

#FranchiseStrategy, #DebtLeverage, #RiskManagement, #MultiUnitFinance, #DownsideProtection, #CapitalStructure, #FranchiseInvesting #MultiUnitFranchisees , #MultiBrandFranchisee , #atenantco

1 month ago | [YT] | 0

ATENANTCo CRE Services for Franchises

Multi-Unit Franchisees Growth Gems: “Real World Advice from the Front Lines”

You're required to remodel roughly every five to seven years, but since the pandemic, the cost of that compliance has increased so much more, threatening your Franchise portfolio unit economics.

Fundability is a huge factor. When external shocks hit, the Franchisor & Franchisee partnership is tested. As Multi-Unit operators, you need a proactive strategy to ensure you can afford the mandatory system evolution.

The Problem:

Compliance Cost Spike: The cost of a mandatory remodel has increased "so much more" since the pandemic. This creates immense financial pressure, especially as most brands require remodeling every five to seven years.

Franchisor Fundability Onus: Franchisees put some of the onus on the Franchisor to make sure fundability is locked in place. This is crucial because even successful operators can see their internal funds (EBITDA) drop due to unexpected external costs like commodity spikes.

Footprint and Age Inconsistency: Remodels must account for significant differences in asset age like stores that are 70 years old vs. stores that are 5 years old. Furthermore, the required footprint is changing.

The Solution:

Demand Fair Remodel Elements: You must work with the Franchisor to make sure the elements of the remodel are fair and affordable, especially since a lack of fundability prevents the necessary system investments that benefit the brand.

Ensure a Fundability Safety Net: Require the Franchisor to help secure fundability for the system, providing a necessary safety net when your internal business operations (EBITDA) are temporarily low due to unexpected external market conditions.

Push for Flexible Footprint Standards: Advocate for remodel standards that are realistic for the mix of asset ages in your portfolio and align with modern operational needs. One size fits all standards are fiscally irresponsible in a high cost environment.

Which creates a bigger hurdle to fundability: Mandatory Remodel Compliance Costs or Unexpected Commodity and Labor Shocks?

#FranchiseFinance, #RemodelStrategy, #Fundability, #FranchiseePartnership, #CapitalPlanning, #ComplianceRisk, #uniteconomics, #MultiUnitFranchisees , #MultiBrandFranchisee , #atenantco

1 month ago | [YT] | 0

ATENANTCo CRE Services for Franchises

Franchise Edge Tuesdays:

Your biggest competitive edge isn't the brand's playbook; it’s the entrepreneurial experience you bring to the table.

For Multi-Unit Franchisees, the real competitive advantage isn't the corporate ad fund; it’s building a replicable, grassroots hype engine driven by operator level innovation that drives immediate, massive sales volume and builds high margin, sticky loyalty.

The Problem:

The "Quiet Opening" Mistake
Following the traditional playbook of quietly opening doors and hoping people show up; fails to leverage the massive revenue opportunity of pre-launch hype, which is essential to maximizing cash flow and setting a high P&L baseline from day one.

The "Copy & Paste" Strategy
Assuming what corporate gives you is going to get you by, is a critical failure that prevents operators from leveraging their own diverse business experience to personalize the location and unlock strong, record breaking unit performance.

Failing to Delegate Local Ownership
Treating Local Store Marketing as solely a regional manager's oversight task, rather than empowering and funding store level leadership to create initiatives and program that resonate with the immediate trade area.

The Solution

Mandate the Year Long Hype Cycle
Adopt a "Blue Ocean" pre-launch strategy to systemize the process of announcing the store's arrival 9-12 months out, utilizing digital platforms for construction updates, giveaways, and product familiarization to guarantee a record breaking grand opening.

Operationalize the "Local Feel" System
Create a simple, reproducible "Personalization Playbook" for every unit as this playbook must integrate the best local practices learned from the operator's Non-Franchise experience to make the Franchise feel locally owned leveraging community recognition initiatives that corporate HQ may not provide.

Invest in Your Local General Managers
Success requires Multi-Unit Franchisees to put in the work, money, and time on the local marketing strategy in addition to funding and empowering store leadership to execute the personalized elements as this targeted local investment drives defensible sales and lowers customer acquisition costs.

What’s the greatest hurdle to replicating your best performing Local Store Marketing initiatives?

#FranchiseMarketing, #uniteconomics, #MultiUnitStrategy, #LocalStoreMarketing, #OperationalExcellence, #LSMROI, #CommunityEngagement, #atenantco , #MultiUnitFranchisees , #MultiBrandFranchisee

1 month ago | [YT] | 0