A Clear & Defined Letter Of Intent

As a franchisee, it is in the best interest to make sure you cover all of your ground in negotiating a lease. This week, I closed the deal on my space. My first Red Mango center will be located on 334 Massachusetts Ave, Boston MA. I am very excited about this space as it has much exposure to both Northeastern and various schools and landmarks in a close proximity.

In terms of an LOI - it all goes back to the same principle of finding the right broker. Without a broker who knows how to deal with retail space and get you an aggressive deal, you will be starting off on the wrong foot.

Through my experience in dealing with LOI's, here are some basic terms which must be defined when negotiating your deal;

TERM:

SQUARE FOOTAGE:

BASE TERM RENT:

PARKING:

CONDITION OF

PREMISES:

UTILITIES TO

PREMISES:

SIGNAGE:

ADVERTISING

DUES, MERCHANT

ASSOCIATION and

OTHER FEES:

TENANT’S WORK:

RENT

COMMENCEMENT:

COMMISSION

/ AGENCY:

DEPOSIT:

CONDITIONS:

Finding the Right Broker

In this particular experience, finding property I feel is one of the, if not most difficult processes in getting your space.

Red Mango requires a very specific space and being in the Boston market, it is not an easy task finding a speace with heavy signage, ample foot traffic, and most importantly with the appropriate zoning and permit requirements.

Without a broker, this process is very difficult to achieve on your own. Nevertheless, being completely dependent on the broker is not a good idea either. You should always keep your eyes open on the streets to see signs for available space. You will be very surprised at the amount of space that is available but not listed through MLS. My suggestion is, if you happen to run into a space you like, call your broker directly and let him start handling the process. This always makes things clearer..

In any case, here are specific things you should look to make sure your broker has before you move further in trying to find a site. Without a proper broker, you will be running around in circles for months without a site that works for you

Do your due diligence. Start by doing the same kind of Due Diligence on your Broker Candidates as you would on properties themselves. This will increase the probability that the broker you choose will be the right broker

How long has the broker been in the business? There are many brokers who cross over from Residential Real Estate into Commercial Real Estate in an effort to "make big money". What they fail to realize is that Commercial Real Estate is more than just selling or buying real estate.

Have they kept current with changes in their profession along with market changes? Ask the commercial real estate broker about his or her credentials, certification and education in terms of selling commercial properties. It is very important that they focus clearly on your business for deals. The last thing you want is a broker who is involved in both residential and commerical space which tends to delay the process in getting specific details reviewed. Your Commercial Real Estate broker may have years of experience but they also need to be able to adjust to new selling or buying methods. If your broker is not in the loop about the newest trends of investors buying pools or how new technology is affecting the market trends, you may potentially lose out on a property.

Make sure the broker is loyal to your needs as a tenant and is not in a conflict of interest. A broker with a fiduciary interest in a property is incapable of putting my needs first. I am very careful to deal with business ambiguity up front in all contractual relationships and will work with someone based on their their loyalty to me being their first priority. Pay particular attention to how fast they return telephone calls after meeting. This may sound insignificant, but it says something about their professionalism and the way they do business. First, a broker will have information about the market that you will not, especially if they have worked in the area for an extended period of time. I have worked with brokers that have sold the exact same properties a number of times. They were able to give me history about building conditions and ownership that I was unable to get from other sources.

The Start of a New Venture

1 Month away from completing my Bachelors of Business Administration at Babson College in Massachusetts, I have decided to go forth with a franchise I feel has the ability to capture an untapped market in Boston. This franchise is Red Mango.

Founded over six years, Red Mango has become one of the most popular and fastest growing retailers of authentic nonfat frozen yogurt in the United States, and is recognized as the pioneer of the tart, healthy frozen yogurt trend that’s sweeping the nation. This concept has been introduced in Boston with small businesses like Berryline and other various independent ownerships, however a nationwide brand and concept has never entered this market.

After a long fought battle with Red Mango cooperate, they have approved me as a franchisee. Certain characteristics they look for in franchisees is their experience, capital, nature, and general passion for the concept. Red Mango’s stylish environment allows customers to relax and enjoy a healthy, flavourful eating experience.

Red Mango is a statement about you:

“Love yourself”

In turn, the basic reason for this blog is to tell a story from start to finish about opening a franchised business and aspiring to develop a system that fulfills the goal of multi-unit ownership.


This blog will serve as a means of understanding the process of what it takes to be a successful business owner from the very beginning, to development, launching, managing, maintaining, and further growing your own venture.

You will be able to witness my achievements, difficulties, and strategies of opening small business.