Business Franchise Australia

The Retail Landscape

The success of any retail franchise is inextricably linked to the success of the lease negotiations. Rent generally constitutes the largest fixed cost in any retail business, ranging from 8 per cent of sales up to 25 per cent of sales in some cases. Given the significance of the cost impost on any retail business, negotiating the lowest gross occupancy costs, and keeping them low throughout the tenancy, is a key skill to be acquired by all good retailers.