What gives a franchisor nightmares?

What gives a franchisor nightmares?

By Peter Buckingham
Try the escalating costs of retail space for their franchise system.

Let’s imagine I am a franchisor in Australia today, in a predominantly retail business. My biggest fears are the cost of retail tenancies in shopping centres, and how we control these costs for the future. I can fuel my fear by adding in the power of the shopping centre executives to alter the retail mix. I’ll throw in some pop ups/short term rentals to darken the mood. Suddenly there’s a nightmare scenario: the changes that can be made outside of my control can drastically harm my business.

In my view as an analyst, we have too much retail space in Australia. The space has become significantly over priced, and all the power lies with the shopping centre management.

So what can be done?

Read more at https://www.franchisebusiness.com.au/news/what-gives-a-franchisor-nightmares/

#franchising #leasing #retailfranchise #retaillaws #franchisor #retailspace #shoppingcentres
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